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www.bunkerspot.com Volume 4 Number 6 December 2007 / January 2008
PHYSICAL ATTRACTION: Chemoil in Singapore, Fujairah and Rotterdam
s 3POTLIGHT ON "IOFUELS s 4ERMINAL 6ETTING s 4!-!2! !RBITRATION s %NERGY 3ECURITY s "UNKERING IN #ANADA s 0EOPLE AND 0LACES s .EWS AND %VENTS Contents
NEWS Bunker Markets and Prices 6 Europe 8 Head Office: Americas 12 Petrospot Limited Petrospot House Africa and Mideast 14 Sommerville Court Trinity Way Adderbury Asia Pacific 15 Oxfordshire OX17 3SN England Tel: +44 1295 81 44 55 COMPANY PROFILE Fax: +44 1295 81 44 66 Email: [email protected] Ian Taylor quizzes Adrian Tolson on Chemoil’s plans to become a major bunker supply Website: www.bunkerspot.com force in Rotterdam, Singapore and Fujairah 16 Publishing Manager / Editor Ian Taylor Tel: +44 1295 81 44 55 COUNTY PROFILE Mobile: +44 7876 70 45 41 Email: [email protected] David Waterman looks at the Canadian bunker market 20 Publisher Llewellyn Bankes-Hughes Tel: +44 1295 81 44 55 LEGAL ISSUES Mobile: +44 7768 57 44 30 Dutch lawyers Carel Baron van Lynden and Marcel Verhagen assess the benefits of using Email: [email protected] TAMARA arbitration in bunker dispute resolution 24 Associate Editor Lesley Bankes-Hughes Tel: +44 1295 81 44 55 BUNKERSPOT WORLD MAP Email: [email protected] Global prices and news at a glance 26 Reporter David Waterman Tel: +44 1295 81 44 55 Email: [email protected] OPERATIONAL ISSUES Advertising and Sales In the second installment of our series on barging, Buffalo Marine reports on the efforts Ria Armstrong it has made to improve and innovate its bunkering operations 28 Tel: +44 1295 81 44 55 Email: [email protected] Capt. Howard Snaith, INTERTANKO’s Marine Director, talks to Bunkerspot about Subscription and Events Coordinator the significance of hosting the Terminal Vetting Database on the Q88.com website 32 Robyn Camilleri Tel: +44 1295 81 44 55 David Plummer unveils some of the new capabilities on offer from Pole Star’s Fleet Email: [email protected] Manager product 34 Events Manager Luci Llewellyn-Jones Tel: +44 1295 81 44 55 TECHNICAL ISSUES Mobile: +44 7775 92 42 24 Email: [email protected] Daniel Kane, VP of Propulsion Dynamics, talks to Bunkerspot about the role of hull performance monitoring in achieving fuel conservation 38 Events and Marketing Executive Alison Parsons Tel: +44 1295 81 44 55 Email: [email protected] ENVIRONMENTAL ISSUES Events Sales Manager David Waterman looks at the potential of biodiesel as an alternative fuel for the Luke Hallam Evans shipping industry 40 Tel: +44 1295 81 44 55 Mob: +44 7815 86 73 52 Email: [email protected] Jon Watson of Razaghi Meyer International considers how the propaganda machine may be undermining the aims of MARPOL 44 Accounts Miles Walsh Tel: +44 1295 81 44 55 Email: [email protected] SECURITY ISSUES Stan Ayscue of Securewest International looks at global security issues in maritime Cover Photo: Courtesy of Chemoil Energy energy transportation 47
EVENTS Events and training course diary 49
NETWORKING People on the move, and a review of the latest BunkerNews Directory 50
Bunkerspot is an integrated news and intelligence service for the international bunker industry. The bi-monthly magazine and 24/7 electronic news service, www.bunkerspot.com, both provide highly-specific information on all aspects of the marine fuels industry. Bunkerspot Magazine (published in February, April, June, August, October and December) annual subscription rate, including unlimited access to the website www.bunkerspot.com, is $430 / £225 / %315. ISSN 1741-6981. Copyright Petrospot Limited © 2008. All rights reserved. Published by Petrospot Limited, a dynamic & independent publishing, training and events organisation, focused on providing information resources for the transportation, energy and maritime www.bunkerspot.com industries. Disclaimer: Bunkerspot is an editorially independent magazine and electronic news information service. The information contained in the magazine and website is presented in good faith. Opinions expressed are not necessarily those of Petrospot Limited, which does not guarantee the accuracy A one-year subscription is only of the information contained in Bunkerspot. Nor does Petrospot accept responsibility for errors or omissions or their consequences. £225/$430 for both the magazine No part of Bunkerspot may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, and unlimited website access photographic, recorded or otherwise, without the prior written permission of the publisher. Designed by Matthew Stuart. bunkerspot December 2007 / January 2008 www.bunkerspot.com 3 Bunker Markets & Prices
MONTH ROLLING PRICE CHARTS 380 CST Fuel Oil
600 Houston 380
Singapore 380 500 Fujairah 380
400 Rotterdam 380 PRICE $/tonne
300
200 DJFMAMJJASON
-ARINE $IESEL /IL
1000 Houston MDO
Singapore MDO
800 Fujairah MDO
Rotterdam MDO
PRICE $/tonne 600
400 DJFMAMJJASON
/IL PRICES PULL BACK FROM THE A BARREL BRINK Moving in line with crude oil markets, that this was a ‘fair price’. In fact, Chavez concluded that Iran had halted its work on bunker fuel and marine distillate prices told an OPEC summit that crude oil prices the development of nuclear weapons some rose steadily in October and for much of could even double to $200 a barrel if the US four years ago. November, before dipping after the late were to make any attempts to attack Iran. The US President George W. Bush said November US Thanksgiving holiday. After Thanksgiving, however, the price that the report did not let Iran off the hook The rising cost of crude oil in October and of crude oil on NYMEX slid back to around completely. Clearly, he reasoned, Iran did November could be attributed to several $90 a barrel. Trying to explain the dip, have plans to develop nuclear weapons factors, not least the weakening dollar, while analysts pointed to reports that some in the past, and so it may decide to do the Organization of Petroleum Exporting OPEC members had let it be known that so again in the future. ‘Look,’ said Bush, Countries (OPEC) limits on production they would be willing to increase oil exports ‘Iran was dangerous, Iran is dangerous remained tight. Instability in the Mideast to take the heat out of the market. The and Iran will be dangerous if they have the region also played its part in pushing up analysts also said that the market had been knowledge necessary to make a nuclear the price. artificially buoyed up by traders who had weapon.’ However, it was generally felt the The price of crude oil on the New York been ‘chasing the historic $100 a barrel report would make it significantly harder for Mercantile Exchange (NYMEX) came mark’. the US Administration to win international within a few cents of the $100 a barrel mark Another factor which has – for the moment support for a military foray in Iran. in the days leading up to Thanksgiving. at least – brought oil prices back from the So, the overall trend for bunker fuel While this caused a stir in the markets, $100-a-barrel brink, is the release, in early and oil prices generally has been upward. Venezuela’s President Hugo Chavez insisted December, of a US intelligence report which Despite the dip in early December, bunker
4 www.bunkerspot.com December 2007 / January 2008 bunkerspot Company Profile: Chemoil Energy )NDEPENDENTS $AY
Ian Taylor quizzes Adrian t the recent ARACON early 1990s. Firstly, it decided that it would Tolson on Chemoil’s plans Conference in Amsterdam (17-19 henceforth target markets where it could AOctober), there was much talk ‘add value’, differentiating itself from its to become a major bunker of bunkering being at the ‘crossroads’, competitors by, for example, offering a full with shipowners and bunker suppliers control of its supply chain. Secondly, it supply force in Rotterdam, desperately looking for direction on determined that it would focus on first-tier Singapore and Fujairah tough issues such as sulphur emissions bunker ports where it could be assured of and coping with spiralling crude prices. supplying large volumes. But one speaker – Adrian Tolson, Now let’s fast forward to 2007. Over the Chemoil’s Vice President for sales and past 12 years, Chemoil has indeed followed marketing – saw a ‘road paved with through on its international mission. The opportunity’. company has returned to Panama, and this The challenges ahead are significant, time it has carved out a market niche conceded Tolson, but so are the potential which is both growing and profitable. In rewards. Success in this game calls for the US, Chemoil is now stronger than ever adaptability and lateral-thinking – qualities in its core ports, seizing the largest market more readily associated with independents share on the US West Coast and leading than the majors. Tolson urged his fellow the supply of cleaner fuel products. There suppliers to embrace their destiny: have been some false moves – a short-lived ‘Independent bunker suppliers have an foray in Istanbul springs to mind – but the unprecedented opportunity to take a more ‘controlled expansion’, aided by support from prominent role in the industry as well as Itochu Corporation and latterly an initial be the driver for positive change in the public offering (IPO) on the Singapore stock marketplace.’ exchange, has been impressive. The time has come, added Tolson, ‘for the Most importantly – and very much in independents to stop hiding!’ keeping with the continuing focus on Certainly, no-one could accuse either first-tier ports – Chemoil is building up Chemoil or its charismatic chairman and physical supply operations in Rotterdam founder, Robert Chandran, of being shy and and Singapore and is now poised to enter retiring. the Fujairah market. This will put Chemoil In preparing for my interview with Tolson, in a uniquely powerful position – the only I revisited a profile on Chemoil which I bunker company with full control of its wrote for the November 1995 edition of the supply operations in all three of the world’s now-defunct BunkerNews. The headline major bunkering ports. was a bold statement of intent: ‘Chemoil Sets Given this context, it was clearly time to Its Sights On Controlled Global Expansion’. quiz Tolson on Chemoil’s plans for 2008 in The article went on to look at how Chemoil general, and its activities in the big three had first established itself as a physical supplier ports in particular. in San Francisco and Los Angeles/Long Ian Taylor (IT): What is the current Beach in 1982 before making an ambitious situation with the new operation in assault on the world stage. Fujairah? In the late 1980s and early 1990s, Chemoil Adrian Tolson (AT): We announced our opened offices in Singapore, Hong Kong, new partnership with Gulf Petrol Supplies Copenhagen, Sydney, the Philippines and (GPS) in February 2007, and we will start Panama. But when I came to write the supplying in January. Some of the tanks at Adrian Tolson is Chemoil’s Vice President for Sales BunkerNews article in 1995, many of these the GPS/Chemoil terminal will be ready and Marketing. international outposts had been closed and for the launch and we will also be using our – apart from a relatively small operation in own bunker barges for delivery. The GPS/ Contact: the Philippines – Chemoil’s bunker supply Chemoil joint venture is for the storage only. Adrian Tolson operations were again concentrated in the Chemoil will be handling the bunker sales Chemoil Energy US West Coast and Gulf Coast markets. and the barging. Tel: +1 415 268 2740 So, at first glance, talk of ‘global expansion’ We will be starting relatively slowly, as we Fax: +1 415 268 2704 may have looked misplaced. The keyword, wait for the full tankage to become available, Mob: +1 415 420 0767 however, was ‘controlled’. Chemoil had but we see this as a market with tremendous Email: [email protected] learned some valuable lessons from the potential. Total sales are around 10 million
16 www.bunkerspot.com December 2007 / January 2008 bunkerspot Company Profile: Chemoil Energy
‘Chemoil is building up physical supply operations in Rotterdam and Singapore and is now poised to enter the Fujairah market. This will put Chemoil in a uniquely powerful position – the only bunker company with full control of its supply operations in all three of the world’s major bunkering ports’
metric tonnes (mt) and there are currently just three suppliers in the market, so there are clearly opportunities for another physical supplier. IT: And what is happening in Singapore? AT: January will be a very important month for us in Singapore as well. Of course, we already have a presence here. We returned to the Singapore market in 1999, but the bunker supply volumes have been small compared to our ex-wharf business. With the opening of the Helios Terminal on Jurong Island, we will be taking the physical bunker supply operation up to a new level. We will have a superbly-equipped land terminal and we will operate our own barges. Chemoil Europe BV – is now 100% responsibility for the supply chain, with This will be a total Chemoil business, from owned by us. direct, hands-on control. tank to ship. We will have full control of the In October, we bought a 49% stake in For Chemoil, the chance to capture some fuels, the terminals and the barges. Burando Holding, the parent company of of the margins on barging is obviously The terminal will have capacity for about FTS/Hofftrans, which will give us a strong attractive. It will also make us operationally 448,000 mt of fuel. We will probably use position in the barging market. stronger and allow us to extend operations about 50% of this – for both bunkering and We had already been using FTS/Hofftrans across the ARA and the other ports in the ex-wharf business – and lease the remainder barges for bunker deliveries. The company is region. We see that other players in the ARA to other players. definitely seen as ‘cutting edge’: its 21-strong market – Verbeke, Frisol and Wiljo, for We won’t be fully operational until the end fleet includes top-of-the-line barges like example – benefit from this approach. of January but we will look to promote our the Maxima. We therefore thought that IT: Speaking of the ARA market, you business aggressively in 2008 to build up our there was good fit and – given our current used the recent ARACON Conference to market share. commitment to investing in terminalling advance your view that this was – or at least, IT: To complete the picture in the big and barging assets – buying into the company could be – the ‘golden age of the independent three ports, how is Chemoil developing its seemed the natural thing to do. supplier’. What did you mean by that? operation in the Amsterdam-Rotterdam- Ultimately, it will lead to even closer AT: The bunker industry is facing a Antwerp (ARA) market? cooperation and there will be benefits both lot of challenges. The increasing need for AT: We completed the acquisition of for Chemoil and our customers. low sulphur fuel oil (LSFO) may grab the Allround Fuel Trading (AFT) Chemoil Customers will know that they are headlines, but it is not the whole story. As in early 2006 and the company – renamed dealing with a supplier who can take full players in the supply chain, we have to keep
bunkerspot December 2007 / January 2008 www.bunkerspot.com 17 Company Profile: Chemoil Energy
focusing on ways to improve our bunker and some of the media reports latched onto fleets and our terminals. the idea that fuel oil is this toxic substance We get a sense that the majors can be which should be banned from all ships. unsure of what they are doing in the business, For years, no-one took much notice of or where they are going. They don’t seem bunkering, so it is not surprising that there is keen to commit the dollars and cents. a lot of general ignorance about the industry. At the moment, it is the key independents As an industry, we must engage with the – the ‘major independents’ – who are not general public, governments and the media, only pledging their commitment to the and show them that we are ready to embrace market, but backing up their words with the environmental movement as much as hard investment. Furthermore, they are possible. It may not be an easy process, but if proving that they can make a return on that we work together we will find a solution that investment. will be palatable to both sides. Chemoil is a prime example. We have Bunkering is becoming an increasingly talked about our new developments in high-profile industry, so there is nowhere Fujairah, Singapore and Rotterdam, but of to hide. Nor should we need to hide: we course we are also constantly investing in are making the investment required to keep our operations in the US and the Americas. our industry clean and environmentally Our new offshore operation in the Gulf of responsible. We are upgrading our barge Mexico is a good example. In Panama, we fleets to double-hulled vessels; and we are are now set to build a new storage terminal ahead of the game in terms of looking for at Cristobal. We have leased storage for about sources of low sulphur fuel. Our customers, 65,000 mt of bunker fuel at the moment, the shipowners, are voluntarily switching to but when the new terminal is finished in cleaner fuels and also investing heavily in ‘Independents are making about two years time it will have capacity for new ship designs that give extra protection to 245,000 mt of fuel and a marine pier capable bunker tanks. We should be open and honest more money, so they are of berthing Aframax vessels and up to four about what we are doing, because we have a attracting more investment. bunker barges. Our goal is to have a terminal good story to tell. This in turn means that they at Balboa as well, so we can serve both ends IT: On the subject of low sulphur fuel, do of the Canal. you forsee the introduction of SECAs on the have more opportunity to For years, independent bunker companies US West Coast and other regions? invest, building bigger and have been seen as players in a bottom-of- AT: I think there will be SECAs on better terminals and barges’ the-barrel business, largely overlooked by the US coastline sooner rather than later, the investment banking community. That possibly even within the next couple of years. certainly isn’t the case today! California has made significant progress in Independents are making more money, so terms of addressing emissions issues and it they are attracting more investment. This in won’t be long before this filters across the turn means that they have more opportunity rest of the US. There is also the possibility to invest, building bigger and better terminals that there could be a universal switch to and barges. distillates-only within 15 or 20 years. The The opportunities are there, the question practicality of this still remains to be seen is: can we seize them? and whilst this could provide consistency IT: The new-found interest in bunkers is across the board, I think many operators a double-edge sword. Yes, there have been would welcome the flexibility to tackle IPOs and more interest from big investors; emissions in the best way for their business, but the media spotlight has also focused on whether that’s through using cleaner fuels, the risks of pollution and oil spills. How new technology or a combination of both. do you think the bunker industry should The key thing is that Chemoil is committed respond to this? to the bunker industry for the long term. AT: When bunkering does make the news, Even if Friends of the Earth get their way it is usually for the wrong reasons. The and residual fuel is banned, goods will still recent oil spill from the Cosco Busan in have to be carried around the world by ships, San Francisco is a case in point. Of course, and ships will need fuel. Chemoil will be the accident is not the fault of the bunker there to supply that fuel – whatever that kind industry, but the spill has been a large one of fuel that may be!
18 www.bunkerspot.com December 2007 / January 2008 bunkerspot Spotlight on Canada
#OUNTRY 0ROFILE Canada
David Waterman looks he main bunkering areas in been very successful, and the owners, Royal at the Canadian bunker Canada can be broken down into Caribbean International, may be returning Tfour regions: Vancouver, Montreal, the barge next year to continue the supply. market the Great Lakes, and the Atlantic Coast. Vancouver prides itself as an environmentally In all regions Canada’s major ports friendly port. According to the Vancouver compete directly for cargo with ports Port Authority, bunker fuel in the Port of in the United States. Canada’s merchant Vancouver is already among the cleanest and fleet consists of dry bulk carriers along least polluting in the world. Since 1 April with tankers, general cargo vessels and 2007, the harbour dues for tugs and barges ferries. have been based on emission standards. It The marine sector is a significant provider seems likely that Vancouver would be one of passenger transportation services. The of the areas of Canada that would welcome a cruise industry continues to grow in all Sulphur Emission Control Area (SECA). regions with more than two million foreign The three main suppliers in Vancouver are cruise passengers handled by Canada’s major Imperial Oil, ICS Petroleum and Marine ports annually. Petrobulk, representing about 15%, 40% and As well as the regulations imposed by 45% of the market respectively. Marpol Annex VI, Canada has this year Imperial Oil can supply all grades of fuel introduced its own legislation on the sale of oil and marine gasoil (MGO), delivering its marine fuel. The new law requires all marine product via its chartered barge – the ITB distillates sold within Canada to contain no Provider. The ITB Provider has a capacity more than 0.5% sulphur. Although not yet of 2,200 mt and can deliver fuel oil and regulated by law, fuel oil sold in Canada tends distillates simultaneously with a pumping rate to contain less than 1.5% sulphur. of up to 500 mt an hour. The minimum order is 250 mt for fuel oil and 50 mt for MGO. Vancouver Imperial gets its fuel from its refinery 1,100 The Port of Vancouver is the largest and kilometres (km) away in Edmonton, Alberta, busiest port in Canada. In North America, it via rail truck. ranks number one in total foreign exports. In ICS Petroleum sources its product from 2006, it handled 79.4 million metric tonnes refineries in the US such as Tesoro, and also (mt) of cargo, up 4% from 2005’s 76.5 million from Imperial Oil. ICS has two barges – the mt. It trades $43 billion in goods with more 2,500 deadweight tonne (dwt) PT25, and the than 90 trading economies annually. Its main 3,600 dwt PT36 – and the company also uses trading partners are in Asia, and trading is these barges as floating storage. The barges sensitive to the swings of the Asian economy. can supply all grades of fuel, but about 90% It is predominantly bulk cargo that goes of the fuel ICS sells is bunker fuel. The lion’s through the port. share of business with ICS goes through Vancouver is a safe, all-weather, naturally traders, and is done on a spot market basis. deep harbour that requires no dredging. Any contracts are usually with cruise ships. Unlike other bunkering regions in Canada, Marine Petrobulk operates four barges: the suppliers there deliver fuel all year round. It 2,100 mt PB14, the 1,900 mt PB12, and the is the home port for the Vancouver-Alaska 2,900mt PB20 are all dual pumping barges cruise from May to September - one of the discharging at rates up to 400 mt per hour. world’s premier cruise routes - and suppliers The latest addition, the double hulled 4,300 have told Bunkerspot that this significantly mt PB32, is the fastest pumping barge in the affects the volume of marine fuel sold. In Va ncouver m a rket at up 70 0 mt ton ne s per hou r. 2001, sales tax on bunker fuel was abolished As well as the Vancouver harbour, Marine in British Columbia, and suppliers say that this Petrobulk also supplies the surrounding west has significantly helped them since. Product coast Canadian ports. The company can has to be brought into the area as there are no supply all grades of fuel. Deliveries of less local refineries producing significant volumes than 100 mt of fuel oil are available by barge. of bunker fuel. MDO and MGO can be delivered in parcels Last spring saw the arrival in Vancouver as small as 10 mt (a minimum delivery charge of a tanker-barge supplying biodiesel to is applicable). Marine Petrobulk sources its cruise ships. The initiative is said to have product from ConocoPhillips.
20 www.bunkerspot.com December 2007 / January 2008 bunkerspot Spotlight on Canada
Vessels must call at Vancouver inner refinery in Montreal, but can ship its product The Great Lakes harbour anchorage, Victoria anchorage or from its refinery in Sarnia, Ontario. The Great Lakes provide vital transportation Port Angeles for a ‘bunkers only’ call. Petro-Canada stores about 25,000 mt of links between the heavily industrialised fuel oil and about 100,000 mt of distillates cities in the area, with the St Lawrence Montreal at any one time. All deliveries are made Seaway providing a gateway to Europe and Linked to more than 100 countries by many ex-pipe or by road tank wagon (rtw). Sales beyond. According to one supplier, there is shipping lines, the Port of Montreal is located of fuel are usually made via Montreal brokers ‘wind in the air’ about a SECA in the region. on one of the largest navigable waterways and traders. Most business is done on a spot The main bunkering centres are Hamilton in the world, the St Lawrence River, and market rather than contract basis, as the and Sarnia. it offers the shortest route between major quality and quantity of fuel cannot always be The Port of Hamilton is located at the west European ports and North American markets. assured. There were problems of supply in end of Lake Ontario. Major cargoes include Situated 1,600 km inland from the Atlantic, September this year when the quality of fuel dry bulk, liquid bulk and general cargo with it is the international port closest to North did not meet the company’s specifications. total annual tonnage averaging 12 million America’s industrial heartland. Petro-Canada may soon be building a coker mt, of which approximately 1.5 million mt The main suppliers in Montreal are Petro- for its refinery, which would suggest a move is overseas cargo and is visited by more than Canada, Shell, Kildair Service and Imperial away from the production of fuel oil. 700 ships annually. The port authority offers Oil, all of which can supply the main grades Shell is the major supplier in Montreal 8,900 m of docking facilities and 10 shipping of fuel. According to Hampton Bunkering, because it is the only one that has its own piers for cargo storage. fuel can be shipped via truck anywhere up the barge, the 2,500 mt capacity Arca. Kildair The only supplier in Hamilton is St Lawrence River (at a cost). Petro-Canada Service has a 15-20% share of the market in Provmar Fuels Inc., but it does compete operates a 120,000 barrel-a-day (b/d) refinery, the area. The company has a storage capacity with other suppliers in Sarnia, Windsor while Shell has a 125,000 b/d plant. of 200,000 mt of bunker fuel. and Montreal. Provmar is owned by the There are two pipelines supplying fuel, The traders that operate in Montreal are Canadian shipping company Upper Lakes one owned by Imperial Oil and the other by Hampton Bunkering, Reiter Petroleum Group Inc., and frequently supplies its Petro-Canada. Imperial Oil does not have a Inc and ICS Petroleum. parent company’s ships. Provmar can supply
HAMPTON BUNKERING LTD
Worldwide Bunkers since 1970
999 de Maisonneuve Blvd. West, Suite 615 Montreal, Quebec, H3A 3L4, Canada Tel: 514-288-2818 Fax: 514-282-9279 [email protected]
Sylvia Kartanowicz – Susan Cox Spotlight on Canada
other ports in Western Lake Ontario via asphalt rather than fuel oil. Generally the St John’s, Newfoundland, including Irving its self-propelled tanker/barge, the MT quality of the fuel available on the Great Oil and Petro-Canada, but they only supply Hamilton Energy, which has a capacity Lakes is good, and meets RME 25 and DMA marine gasoil. of 1,300 mt. The company can supply all specifications. Halifax is a deep-water port 45-50 feet grades of fuel oil and distillates, all of a high and is the only port on the east coast that can standard, and has a storage capacity of 11,000 The East Coast handle fully laden post-Panamax container mt and 3,000 mt respectively, sourcing its While the main centres of bunkering on the vessels with high labour productivity – an fuel from refineries in Southern Ontario. Atlantic coast used to include Saint John, average of 25 lifts per hour. In Halifax the Provmar does not supply fuel from late New Brunswick, bunkering operations in main supplier is Imperial Oil, which has December to mid-March because of the St the region are now somewhat restricted its own 85,000 b/d refinery in Dartmouth. Lawrence Seaway closure. to Halifax. Irving Oil’s refinery pulled Imperial can supply all grades of fuel oil and In the Port of Windsor, Sterling is the out of the local bunkering market in New gasoil, and can deliver fuel all year round. main supplier and can make deliveries of all Brunswick and now exports most of its Its barge, The Imperial Dartmouth, carries grades of fuel ex-pipe. The company already product. In Newfoundland, North Atlantic 1,650 mt of fuel oil and 450 mt of MGO, has a total storage capacity of 750,000 mt Refining can supply 380cst fuel oil and and is equipped with onboard meters and and plans to double this within the next five MGO ex-pipe from its ‘Come-By-Chance blenders. Sales of fuel are largely done on a years. refinery’, but only to oil tankers working spot market basis. Fuel can be supplied all Imperial Oil operates a refinery and cargo. There are suppliers in the port of year round. supplies bunker fuel in Sarnia, at the southern tip of Lake Huron. Shell previously supplied Port Bunker suppliers Fuel grades available Supply infrastructure fuel in Port Colborne, Ontario, although this Vancouver ICS Petroleum, Marine All grades of fuel oil, MDO and MGO Barge terminal permanently closed earlier in 2007. Petrobulk, Imperial Oil Fuel oil availability in the region can Montreal Petrocanada, Shell, Kildair All grades of fuel oil, MDO and MGO Ex-pipe, barge, rtw be tight, especially in September/October Service, Imperial Oil when local refineries direct more of their Hamilton Provmar All grades of fuel oil, MDO and MGO Tanker-barge product to the asphalt market in order to Sarnia Imperial Oil All grades of fuel oil, MDO and MGO Ex-pipe take advantage of increased road building Windsor Sterling All grades of fuel oil, MDO and MGO Ex-pipe activity before the onset of winter. Provmar told Bunkerspot that in the last couple of Halifax Imperial Oil All grades of fuel oil, and MGO Barge, rtw (for MGO) years there has been a big push to produce Key: MGO=marine gasoil; MDO = marine diesel oil; rtw = road tank wagon
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‘All aspects of the industry are ‘Fisher and Lux have meticulously covered in detail, in accessible updated swathes of the book to CONTACT US WITH YOUR INQUIRIES language. The section on legal reflect the list of new regulations issues and dispute resolution ‘A valuable guide to the bunker applicable to the bunker industry will be of particular interest industry that will promote in recent years, including must- 625 du President Kennedy Ave to lawyers, given what seems understanding, raise awareness, read IMO and EC proposals and Suite 705 to be a global trend towards increase safety levels and help legislature sections on sulphur deteriorating bunker fuels.’ protect the environment’ and double hulls.’ Montreal, Quebec H3A 1K2 Maritime Advocate Lloyd’s List Bunkerworld Tel: (514) 878-2563 Fax: (514) 878-3463 E-mail: [email protected] Order your copy today +44 1295 814455 www.reiterpet.com [email protected] o m w w w.bunkerspot.com Legal Issues 4!-!2! TODAY
Carel Baron van Lynden he advantages of using arbitration and Marcel Verhagen as a fast and efficient way of ‘A major advantage of Tachieving dispute resolution using arbitration in dispute assess the benefits of within the maritime industry are well- known and understood. The major resolution is that an award using TAMARA arbitration centres for arbitration in the maritime can be enforced in almost in bunker dispute field, London and New York, are, every country under the however, often beset by delays and resolution substantial procedural costs. Various provisions of the so-called arbitration institutes throughout the ‘New York’ Convention’ world are therefore attempting to provide an alternative service to the two major arbitration centres. Arbitration proceedings in the Netherlands In the Netherlands, Transport and usually comprise two rounds of exchange of Arbitration Rotterdam Amsterdam documents and submissions, followed by (TAMARA) arbitration can provide strong a hearing before the arbitrators. However, expertise for the resolution of disputes in these hearings will not be as extensive as the bunker industry. Rotterdam is one of those held in London or New York. In most the biggest bunker ports in the world and cases, the hearing will be more of an oral has an excellent reputation for the quality pleading of the case, and will not include of its services to the bunker industry. Most a hearing of the witnesses or experts. The major surveyors and suppliers are located tribunal may subsequently render an interim in the Port of Rotterdam, and a number of award, ordering the parties to prove their well-established law firms are also available posita, or standpoints, render a final award, to assist the industry in the resolution of or give other directions to the parties as it disputes. sees fit. Arbitration proceedings under Dutch TAMARA was founded in 1987 by law do not allow for a right of appeal unless the major shipping law firms, the Royal this has been agreed by the parties under the Dutch Association of Shipowners, the terms of their arbitration agreement. Chambers of Commerce of Rotterdam There are only limited grounds for the and Amsterdam, and other parties annulment of an arbitration award, and involved in the maritime industry. Initially, these can be found in Articles 1064 and the arbitrations were undertaken in a laissez 1065 of the Code of Civil Procedure. These faire, laisser passer manner. However, in provisions mainly consider the formal Carel Baron van Lynden is a senior partner with AKD 2001 the arbitration rules of TAMARA aspects of the arbitration procedure, such Prinsen Van Wijmen N.V. He specialises in shipping were amended and now specifically describe as the existence of a valid agreement for and insurance law, and is active in the bunker industry, the standard procedure. arbitration, or conflicts with public policy representing both shipowners and suppliers. The rules of TAMARA are based on the resulting from an award or the way in Dutch Arbitration Act of 1988. Fundamental which it was rendered. An award annulment Marcel Verhagen is one of two founding partners of to the arbitration process is that the tribunal may also result if the tribunal is deemed to Jumelet Verhagen Advocaten, which was established within a Dutch case should always consist have gone outside the limits as defined by in 2002 and specialises in shipping and trade. of an odd number of arbitrators, thereby the parties involved. However, an alleged differing from the proceedings under the misinterpretation of the law or the facts by Contact: English Arbitration Act when a tribunal can the arbitrators does not give grounds for the Carel Baron van Lynden be made up of two arbitrators. annulment of an award. AKD Prinsen Van Wijmen N.V. Arbitrators appointed under Dutch law and A major advantage of using arbitration Tel: +31 88 253 5409 under the rules of TAMARA should always in dispute resolution is that an award can Email: [email protected] be impartial and, unless agreed otherwise, be enforced in almost every country under Web: www.akd.nl should make their decisions in accordance the provisions of the so-called ‘New York’ with the rules of law. If all parties explicitly Convention, whereas the judgement of a Marcel Verhagen agree, prior to the arbitration, the arbitrators ‘normal’ court is only enforceable in another Jumelet Verhagen Advocaten can decide as compositeur aimiable, whereby country if there is some form of treaty Tel: +31 10 217 09 91 they can dispense with considerations of the between the countries concerned. Email: [email protected] law, and consider the case in hand solely on Although the name TAMARA may not Web: www.jvlaw.nl the basis of what is fair and equitable. yet ring an arbitration bell for everyone,
24 www.bunkerspot.com December 2007 / January 2008 bunkerspot Legal Issues
the procedure is gaining popularity within apply Dutch law. Unless there is a clear the maritime industry. What began as an choice of law, the arbitrators will decide ‘Significantly, the fact alternative arbitration process for Dutch which law they will apply in accordance that TAMARA arbitration shipowners and charterers to the London with the rules of International Private Law. system has now grown to a full service If this does not happen to be Dutch law, the has been chosen does not arbitration institute for the maritime arbitrators will, if necessary, obtain legal necessarily mean that the industry. TAMARA arbitrators now deal opinions from experts in other particular arbitrators will apply Dutch with charter disputes, shipbuilders’ contracts, fields of law. salvage claims, bunker disputes, and sale and Furthermore, proceedings held before law’ purchase disputes. Also, non-marine-related TAMARA arbitrators do not require that transport disputes can also be resolved documentation must all be provided in the through TAMARA. Dutch language. Arbitration proceedings The TAMARA rules contained fixed can be carried out in English, and documents requirements as to how an arbitration must that are made available in English, German be initiated. An arbitration is deemed to be or French do not necessarily have to be pending (thus safeguarding a possible time translated. Of course, if arbitrators do require bar) from the moment that the TAMARA translations they will be provided, but this is Secretariat receives a copy of the notice not standard practice. of arbitration which has been sent to the As stated before, a TAMARA award is not opposing party. This, therefore, provides subject to appeal. It may be published in case an objective way of showing when the law magazines, having been anonimised, arbitration is pending. but if one of the parties involved does not The appointment of arbitrators is also want the award details to be revealed then it regulated within the arbitration process cannot be published. conditions. Each party appoints an arbitrator, Under Dutch law, discovery or disclosure and these arbitrators will then jointly is unknown. Although there is an article appoint a third arbitrator. Arbitrators can in the Dutch Code of Civil Procedure that be appointed from a list held by TAMARA, obliges parties to submit relevant documents but this is not mandatory. Those arbitrators to the Court, there is no stringent disclosure who are on TAMARA’s list have agreed to and discovery obligation. This is a major hourly fees as set down by TAMARA which advantage in comparison with proceedings range from `180 to `225 ($262 to $328). held before English or US arbitration The TAMARA Rules also describe how tribunals, and can create significant cost an arbitrator should be appointed if the savings and avoid considerable delays. opposing party does not appoint an arbitrator Finally, finding security for claims is not within a set time limit. If this is the case, particularly difficult in the Netherlands, and the President of the Rotterdam District ship arrest and freezing orders can be quickly Court will, at the request of one of the obtained. Courts are available at very short parties involved, appoint an arbitrator. The notice to hear a lifting request – within arbitration rules also contain time schedules hours if need be. for such appointments. For the bunker industry, TAMARA can In principle, the arbitration proceedings therefore offer a serious alternative option for before TAMARA will consist of one the resolution of disputes. While arbitration round of exchange of written statements under the rules of TAMARA does not and documents after which the arbitrators prescribe the assistance of lawyers, it is a may decide whether or not reply and form of dispute resolution and therefore it is rejoinder submissions should be filed. If the strongly recommended that lawyers are used parties agree, either before or during the to act in the proceedings. proceedings, to exchange reply and rejoinder Full information about TAMARA can submissions, the arbitrators will allow them be found at: www.tamara-arbitration.nl. to do so. Thereafter, the parties will have an Here may be found the arbitration rules, opportunity to orally plead the matter. a reference to the Arbitration Act, the Significantly, the fact that TAMARA list of arbitrators, and other information arbitration has been chosen does not necessary for carrying out arbitration in the necessarily mean that the arbitrators will Netherlands.
bunkerspot December 2007 / January 2008 www.bunkerspot.com 25 UNITED KINGDOM Artico Energy opens for business (see page 9)
NEW YORK w CANADA 380 484 Fast-pumping 180 514 Vancouver barge mdo 828 (page 12)
HOUSTON w 380 473 180 487 PIRAEUS d mdo 748 380 466 180 501 mdo 864
LOS ANGELES w UNITED STATES 380 502 Oil spill prompts calls 180 534 for bunker fuel ban mdo 908 (see page 12)
PANAMA w 380 494 180 526 mdo 835
SANTOS d BUENOS AIRES d 380 471 380 n/a 180 515 180 526 mdo 865 mdo 825
spotlight December 2007 / January 2008 Key: Prices US$ per metric tonne – d delivered / w ex-wharf / 380 – max 380 centistoke 180 – max 180 centistoke / mdo – marine diesel oil ROTTERDAM d 380 457 180 478 mdo 764
NETHERLANDS Shell trials GTL fuel (see page 9)
GIBRALTAR d TOKYO d 380 484 HONG KONG d 380 529 180 509 380 493 180 541 mdo 890 180 505 mdo 726 mdo 818
SUEZ EGYPT d FUJAIRAH UAE d 380 488 380 484 180 501 180 502 BUSAN d mdo 871 mdo 806 380 502 180 529 mdo 806
JAPAN SINGAPORE d OceanConnect opens 380 482 for business 180 494 (see page 15) mdo 804
GREECE SINGAPORE Aegean Marine keeps Helios Terminal set growing to start (see page 8) (see page 15)
UNITED ARAB EMIRATES Chemoil set to launch in Fujairah (see page 14)
KUWAIT KPC launches new barge (see page 14)
DURBAN w 380 n/a 180 490 mdo 863
TRT BUNKERS A division of Barloworld Logistics Africa (Pty) Ltd For all your marine fuels and lubricant requirements in Southern Africa /iÊ Ê\ʳÓÇÊä®Ó£Ê{{äÊÓääÊUʳÓÇÊä®Ó£Ê{£ÊÎÇÎ Fax : +27 (0)21 419 5806 eMail : [email protected] Mobile : +27 (0)82 779 9903 Operational Issues #OMMIT TO INNOVATE
In the second installment ushing bunker laden tank ● purchasing high-tech seals to reduce of our series on barging, barges to meet the just-in- leakage on all pumps without Ptime demands of maritime compromising pump rates Buffalo Marine reports on commerce is not the most complicated ● covering drip pans with expanded of ventures. Yet, the changing metal and grip struts to prevent trash the efforts it has made to expectations over the decades and and debris from collecting in these improve and innovate its emphasis on zero mistakes due to reservoirs overriding environmental concerns, ● locating tank barge drains forward as a bunkering operations has forced companies like Buffalo means of keeping smaller marine diesel Marine Service, Inc. to constantly oil (MDO) tanks free of contaminants evaluate its bunkering operations. ● instituting a rigorous hose-testing Buffalo’s President and CEO, Pat Studdert, regimen that went beyond industry describes his first hands-on bunkering standards in order to reduce the evolution more than three decades ago: possibility of premature hose failures ‘It was about seven o’clock in the morning ● embarking upon an aggressive new when the tank barge had moored alongside build campaign in order to replace the vessel. One of the vessel’s engineers single hull barges with double skins was watching the barge lay out the transfer well in advance of the Oil Pollution Act equipment. Within minutes, a heated of 1990 (OPA ’90) deadline (2015) argument unfolded as to whom would ● designing all new barges in the last connect the hoses. The ship’s engineer decade with raised trunks from bow adamantly refused to lend a hand while the to stern to increase cargo capacity and tug Captain screamed that if they wanted allow more complete containment of bunkers they had better hook things up. any deck spills aboard the tank barge The argument culminated in the engineer itself hurling his half-empty beer bottle onto the ● creating a simplified hose connect and barge – glass scattered everywhere. disconnect procedure diagram that is ‘To this day, I don’t know how that job shared with the receiving vessel to got done but when I described this awful ensure that nothing is spilled from the situation to my father, he merely shrugged hose upon completion of the bunkering his shoulders and told me that it was a tough operation. business and that’s just the way it was.’ That one incident forever remains Buffalo was sensitive to the fact that most imprinted in Pat’s memory and drives his mistakes had occurred when equipment quest to effect positive change across his fleet of vessels; amongst his crews; and throughout the continuum of relationships that drive his business. It all began with a two-year course in crew etiquette and customer interface that continues to this day in the form of refresher training. When Buffalo embarked upon a comprehensive capital improvement programme over a decade ago, Pat insisted on providing his customers with precise Pat Studdert is CEO of Buffalo Marine Service Inc., and expedited transfers. This took the form which has been operating bunker barges on the US of the installation of meters on all new Gulf Coast more than 70 years. tank barges and the rigorous calibration of those devices. Two pumps per barge were Contact: also installed in order to transfer up to Pat Studdert 600 metric tonnes (mt) an hour and build Buffalo Marine Service Inc redundancy into discharge capability. Tel: +1 713 923 5571 Buffalo’s environmental commitment Fax: +1 713 923 5304 manifested itself in a variety of ways which Web: www.buffalomarine.com included:
28 www.bunkerspot.com December 2007 / January 2008 bunkerspot Operational Issues
had failed to perform as anticipated. Hence, procedures in the event things go awry. Pat is extremely progressive in rewarding to ensure tankermen could more easily Studdert recounted that this practice has Buffalo crews with no-spill, safety and end- prime systems, below-deck pipelines were reduced confusion between vessels and has of-year bonuses. In an effort to discourage located as close to the bottom of the tanks bred goodwill with many a foreign crew. smoking, vessels without any smokers as possible. This change also made it easier This last point was particularly important receive additional daily compensation. He to strip the tanks. Additionally, Buffalo’s after the terrorist attacks of 11 September has even earmarked the gross proceeds of barges are designed so that all deck fittings 2001 upon the US. one of his tank barges (the Buffalo 401K) are run in a straight-forward and common Studdert recalled the immediate concern to be distributed amongst the crews at an sense fashion to make it easier for crews local authorities had on 12 September 2001 annual event. Nonetheless, Pat understands to grasp valve configurations, view tank with the thousands of foreign crewmembers that the employer-employee bond is not numbers and gauge hatches. that arrived in the Houston/Texas City/ cemented by money alone. Therefore, he Crew safety and ease of operation was Galveston port complex on a daily basis. constantly strives to foster an ethos of another area of focus for Buffalo. Manual The last thing he wanted to see was the teamwork that instills a commitment to heavy metal winch handles were replaced development of ill will and suspicion excellence in all endeavours. by smooth round discs to avoid injury between US and foreign crews. Thus, he This was recently driven home when if a tankerman lost control of the swing embarked upon an unprecedented ‘good Pat presented personalised Buffalo Marine booms. In order to enhance the reliability will’ campaign where every ship bunkered footballs to every employee. These footballs and operability of all booms, they are by a Buffalo vessel received a World Peace were engraved with the phrase ‘Carry the powered by the engine hydro pumps and Plaque. Ball for Buffalo Marine’. When he handed winches. Furthermore, bunker operations Pat spoke admiringly of how well out these footballs to his team of mariners, were better accommodated by replacing received this project was: ‘It was amazing he exhorted them to treat every bunker hand lines with winches for transverse how crews from around the globe job, to handle every barge movement and movement of the cargo boom. Finally, responded to this initiative. I have letters to oversee each evolution as a critical play given the ever-increasing size of the vessels from ship captains and shipowners from in a hard-fought football game. As he requiring bunker fuel in the Houston Ship Asia, Europe, Central America and all shook the hands of seasoned captains and Channel, all tank barges were equipped points in between thanking Buffalo for patted the younger deckhands on their with 18 metre (m) cargo booms and 12 m its generosity of spirit and focus on the backs, he knew that every ounce of energy of hose from the boom to the ship. positive.’ had to be devoted to ensuring the days Perhaps one of the most telling Buffalo even received a note of thanks of cursing and broken beer bottles would innovations on the part of its President from New York’s Mayor, Rudolph Giuliani, never return to the bunker business. was the construction of the T/B Buffalo for its efforts in preserving goodwill within Star over 15 years ago. This one-of-a- the international maritime community. kind, state-of-the-art blending barge is This outreach had an indelible and equipped with micro-motion meters and positive effect on Buffalo personnel as a fuel controls package that allows bunker they went ‘above and beyond’ to welcome suppliers the option of onboard blending foreign sailors to the shores of Houston. to precise specifications, including the Ship captains quickly related to their peers conversion of barrels to tonnes. that the spirit of friendship was alive and Innovations at Buffalo Marine are well in Texas ports. Studdert was proud certainly not limited to equipment: the of the positive impact his World Peace company has also developed a basic tow-to- Plaques had on the maritime community vessel communications interface to guard and treasures the nearly 3,000 pictures his against misaligned expectations. Once the crews took of the presentation of these tank barge is alongside, Buffalo personnel keepsakes to fellow mariners. methodically walk through the loading Ultimately, Studdert realises none of process and ensure all involved personnel this would have been possible without understand the types of fittings involved, the loyalty and support of the employees and any and all emergency shut-down that drive the Buffalo engine. To that end,
30 www.bunkerspot.com December 2007 / January 2008 bunkerspot Operational Issues 4ERMINAL WELLNESS
Capt. Howard Snaith, NTERTANKO members now INTERTANKO’s Marine have access to near real-time ‘You may have the best Iinformation about the terminals tanker in the world, Director, talks to their ships plan to visit. Behind this significant development is operated by the very best Bunkerspot about the the switching of the Association’s seafarers, but if you put significance of the Terminal Vetting Database (TVD) to this ship into a badly be hosted on the Q88.com website. hosting of the Terminal This is seen as a major step in improving configured and poorly Vetting Database on the tanker safety and security. Oil companies operated terminal, the risk exercise due diligence in selecting of an accident or incident Q88.com website well-maintained and well-managed vessels for charter. The TVD helps increases dramatically’ INTERTANKO’s members exercise due diligence with regard to safety and environmental protection as they strive the water depth at some terminals is less for continuous improvement and for the than shown on the charts, the TVD now Poseidon Challenge aims of zero fatalities, includes new questions on the accuracy of zero detentions and zero pollution. water depth at the berth. You may have the best tanker in the INTERTANKO Marine Director, world, operated by the very best seafarers, Capt. Howard Snaith, commented: ‘We but if you put this ship into a badly very much hope that such feedback will configured and poorly operated terminal, be received positively by terminals, will the risk of an accident or incident encourage continuous improvement and increases dramatically. With the TVD on will enhance safety at terminals, which Q88.com, operators and ships can now do are the critical point in the ship/shore more to gauge those risks and to ensure interface.’ that feedback is available about terminal Having completed the test phase conditions. of a terminal vetting pilot project, In the first 24 hours after the announce- INTERTANKO formally adopted the ment to members, associate members and TVD in 2004, after a small group of the public, INTERTANKO received over members, led by Capt. John Hill of 300 requests to access the new TVD and Heidenreich Marine, created a database more requests are constantly coming in. which could accommodate reports on How does INTERTANKO’s TVD tanker terminals world-wide for the Capt. Howard Snaith is Head of the Marine, Chemical, work? It now works in a similar way to the benefit of INTERTANKO members and Ports, Terminals and Environmental divisions systems operated by the Ship Inspection associate members. at the independent tanker owners association, Report (SIRE) database operated by the ‘Throughout the process of conceiving, INTERTANKO. Oil Companies International Marine implementing and upgrading the TVD, The Q88.com web site was launched in June 2001. The website’s primary function is to automate the Forum (OCIMF) and the Chemical we have not wavered from our original completion of charterer and terminal questionnaires. Distribution Institute (CDI). Any low course, which was to improve safety There are currently 580 questionnaires available, scoring comments on a particular terminal on ships through the use of a simple which are being used by over 340 tanker owners are forwarded by INTERTANKO to and direct system,’ said Capt. John Hill, having an aggregate fleet of over 4,300 vessels. Other the terminal in question (withholding Operations Control Director for Heidmar. industry-related companies are also using the service details of ship and owner), requesting ‘Upgrading the TVD and including it in to access the vessel particular details posted on the comment from the terminal on root cause the Q88 system serves both objectives. It website. Q88.com also offers additional online tools analysis and successful implementation is with great pride that we say: “We are for owners, charterers, brokers and agents. of corrective actions and close-out. The working for our shipmates at sea”.’ terminal’s comments will be entered into The purpose of the TVD is to take Contact: the database alongside the original report; information about terminal and berth Capt. Howard Snaith or if no comments are received by the conditions at tanker ports around the world INTERTANKO terminal after 30 days, then that will also and make it available to INTERTANKO’s Tel: +44 20 7977 7010 be recorded. members and associate members in a Fax: +44 20 7977 7011 Reflecting numerous expressions of compact one-page format, through a Web: www.intertanko.com concern from members over reports that very simple web-based database, that is
32 www.bunkerspot.com December 2007 / January 2008 bunkerspot Operational Issues
available to the ship masters as well as Since a majority of the INTERTANKO shore offices. members are also subscribing to our ‘We have not wavered from This system does not put an approved vetting questionnaire service, it makes our original course, which or non-approved stamp on individual sense to have the TVD accessible from terminals. It is a simple fact-finding and the same website. We have upgraded the was to improve safety on fact-sharing exercise which will benefit TVD to include new internet technology ships through the use of a operational safety and environmental which will make the system easier to use simple and direct system’ protection at the critical phase of the than before.’ ship/shore interface, and will promote INTERTANKO has worked closely continuous improvement. with Q88.com to ensure that the upgrade The TVD also encourages terminal of its TVD meets members’ demands. operators to continue to achieve high This is not a commercial enterprise. It is standards of operation and continuous supplied at no charge to the Association’s improvement through the constructive members and associated members as a comments received through the TVD direct INTERTANKO service whose report and through root cause analysis primary purpose is to enhance safety and corrective action. and environmental protection through Fritz Heidenreich, Manager of Q88.com, transparency, prompt feedback, and commented: ‘We are happy to assist specific reaction to constructive INTERTANKO by hosting the TVD. criticism. Operational Issues 7HAT GETS MONITORED G
David Plumer unveils ne of the main issues facing management departments. some of the new the shipping industry today Pole Star Space Applications has Ois the shortage of suitably always been very aware of the legislative capabilities on offer from qualified crew and a critical shortage changes in shipping and its Business of officers. Development Director, Julian Longson, has Pole Star’s Fleet Manager The International Maritime been a well known face at IMO meetings product Organization (IMO) and many of the over the nine years that the company has affected national administrations around been in operation. Pole Star started out the world are investing significant time simply tracking ships via the Inmarsat C and effort in an attempt to reverse this terminals, fitted under the International trend, but the reality is that a life at sea Convention for the Safety of Life at Sea no longer appeals to our affluent and free (SOLAS) Global Maritime Distress and younger generation. High employment, Safety System (GMDSS) requirements on salaries and freedom are hard to counter in board vessels over 300 gross registered the face of increasing workloads, personal tonnes (grt), and then displaying the liabilities, punishing schedules with little positional information on its Purplefinder shore time and severe security regimes that web-based interface. treat seafarers as terrorists. Crewing has For the more forward-thinking moved East and we are in a sellers’ market fleet managers who adopted the early where seafarers are transient, essentially Purplefinder system, it became a necessity moving to the highest bidder, resulting in that it should offer them much more than little or no commitment to the corporate just a position on a map and so came employer. the introduction of weather information, And indeed it is this commitment high quality marine charts supplied by conundrum that sits uncomfortably with the C-Map followed by messaging capabilities importance of shipping to global trade and via Inmarsat C and other features. To the impact of increasing safety, security and our clients, a constant benefit was the environmental regulation and legislation. knowledge that at any time of day or night To solve this problem, the shipping industry they could see exactly where their fleet was is looking to technological solutions to bring in real time. With increased commercial the ship into the office and never before has pressures and security threats to ship and the mantra of ‘what gets monitored gets crew, knowing a ship’s exact location is an managed’ been so true. essential requirement for any responsible One of the main issues making life harder fleet manager. for both shore-based fleet managers and Recently, Pole Star announced a new ships’ masters is the amount of legislation product, Fleet Manager, which provides that they have to conform to on a daily, and an effective way of monitoring and sometimes even hourly, basis. Be this the managing fleets in real time. The product type of fuel being used, where to discharge has been designed for fleet operators of all bunkers, notice of arrival requirements and types including owners, charterers, liner an almost continual feed of forms that need trade management, ship managers, pool to be completed and emailed before a ship operators and other commercial managers. can enter or leave a port. All these demands The system offers accurate reporting of the must be satisfied otherwise, as we are all whole fleet’s position and status, including David Plumer is the CEO of Pole Star Space too aware in the case of the Oily Water actual speed, average speed, heading, Applications, which has developed a range of tracking, Record Book, in the ship master’s case, this latitude and longitude, nearest port, geo- security and asset management systems for marine, could mean prison. zoning, grouping, weather forecasting and aeronautical and land applications. Owners now hold their fleet managers voyage history information. responsible for ensuring that their vessels The importance of being able to view, Contact: comply with every piece of legislation. download and save voyage history data has David Plumer The competitive nature of third party ship increased, especially when the location of a Pole Star management ensures that owners can be vessel has been called to question, as in legal Tel: +44 20 7313 7402 more demanding and expect more in return disputes between owners and charter parties. Fax: +44 20 7313 7401 for their dollars, but this responsibility However, with the recent introduction Web: www.polestarglobal.com falls equally heavily on in-house ship of several MARPOL regulations, ‘geo-
34 www.bunkerspot.com December 2007 / January 2008 bunkerspot Operational Issues ETS MANAGED
verification’ has never been so important i.e. by the shore-based fleet manager. the linkage between a measured equipment The geo-zoning feature that Pole Star ‘Almost any sensitive or function or environmental parameter and has introduced to the Fleet Management legislated activity can now the actual position of a ship and the specific system was developed for its customers time – think ballast water exchange and mainly in response to their concerns over be remotely monitored, and treatment, nitrous oxide (NOx) and new legislation. Using this capability, in some cases controlled, sulphur oxide (SOx) emissions and/or managers can monitor when their ships by the shore-based fleet scrubber functioning, bunker sulphur are sailing into restricted areas including, levels and tank monitoring, overboard for example, Sulphur Emission Control manager’ discharge and so forth. Managers can use Areas (SECAs), Particularly Sensitive Sea the historical position reports, coupled Areas (PSSAs), and heightened security with their monitored information to prove zones. With frequent position reporting, (or otherwise) that they were not in breach this feature will automatically notify the of regulations. manager when any vessel in the fleet enters Pole Star is now taking this remote or leaves such a zone. equipment monitoring capability a step Points of interest is a user customisable further and working with other companies, feature that can be used to provide key including Martek Marine, Oceansaver, operational information to any user that RCM Marine and Rivertrace fleet manager has given access to the system. Engineering, to integrate these specialist Typical uses are to provide port information providers’ own onboard monitoring systems such as draught, berths, facilities available with Pole Star’s remote reporting capability. and agent contact details. This means that almost any sensitive or Pole Star has introduced a Web View legislated activity can now be remotely feature in Fleet Manager. This serves as monitored, and in some cases controlled, a tool for commercial managers to allow
bunkerspot December 2007 / January 2008 www.bunkerspot.com 35 Operational Issues
constant access to real time feedback on a many versions of this product tailored to the Soon to come are: a Voyage Planning vessel’s voyage to their shippers, consignors needs of the various different types of fleet module which will enable the fleet manager and their customers in turn. Cruise lines operators and managers. The requirements to select a voyage from a library of standard can use the facility to allow relatives of of liquefied natural gas (LNG) carrier voyages derived from distance table sources their passengers to follow progress of the operators are totally different to those of the and planned for next year; and a Post- fleet and to show the history of previous cruise companies, tanker pool operators, or voyage Analysis module which will allow voyages. It is simple to set up: they paste container liners, and Pole Star is planning the fleet manager to replay the progress of a the Web View address into their own to have products to fulfil the needs of every voyage with overlays of observed weather. website or on their intranet. Web View sector of shipping. Using data libraries is Anybody working in maritime can be displayed in conjunction with three one way to do this. For example, detailed communications must also be aware of the dimensional (3D) Earth programmes such port information relevant to each market increasing push of broadband at sea. This as Google Earth. is available from Pole Star and an LNG potentially opens up a totally different The ability to display a ship’s position tanker operator can simply subscribe to market to Pole Star where, up until now, on a 3D representation of the earth may the LNG data library and the information its users have been shore-based. With seem trivial to those of you who have a full will be available on screen to all the users broadband onboard we expect to develop understanding of marine charts. However, in that customers’ account. For a manager Fleet Manager into a tool that is used let us not forget that there are many of a mixed fleet, this means they will have onboard the fleet as well as to monitor the companies out there, for example large the potential to separate their fleet into fleet. organisations responsible for transporting different groups and make available the The whole ethos behind the fleet and billions of barrels of oil and operating oil relevant zones, data library and points of vessel management systems that Pole Star and gas rigs, where company directors and interest relevant to each group within the is developing is to make the life of those executives have never been on a ship, let fleet. on shore and at sea, easier. The rules and alone have an understanding of marine Voyage monitoring will be introduced regulations that legislators have imposed charts. Pole Star was approached by one later this year, which will allow commercial are, in theory at least, there to protect all of such company which explained that should fleet managers and charterers to input us, but the danger of over-worked seafarers it face an emergency, marine charts were a detailed voyage plan for each of their is obvious: mistakes. Mistakes in shipping no use to its directors. They needed to be vessels, then to monitor the performance are costly and dangerous. Not only this, able to understand exactly where a disaster of their fleet in relation to the voyage plan. but the constant requirement to complete was in relation to land and gauge the effect It will feature automated warnings which paperwork does not help to encourage based on this knowledge. will alert the fleet manager when a vessel young people to enter our world and above This is just the beginning for Pole Star’s is behind schedule, off-course or below or all, what shipping needs now is enthusiastic Fleet Manager. There are plans to develop above the expected voyage speed. new blood.
36 www.bunkerspot.com December 2007 / January 2008 bunkerspot Technical Issues "ELOW THE WATERLINE
Bunkerspot talks to Daniel ull condition is playing Kane, VP of Propulsion an increasingly important ‘What is new is Hrole in the quest for fuel establishing optimal Dynamics, about the conservation because of substantial rises in bunker costs. The advent of intervals for hull and role of hull performance new environmentally-friendly hull propeller cleanings’ monitoring in achieving coating systems is also significant and these are also being investigated for fuel conservation their impact on fuel conservation. Once the owner/operator takes its trial trip. The establishment of sea trial possession of a vessel, the ship in operation performance criteria (when the vessel was will inevitably lose propulsion efficiency operating with its cleanest, smoothest over time due to marine fouling of the hull) creates a true benchmark for the hull and propeller. The measurements of current condition of hull and propeller the effects of marine growth on the hull when in service. are, however, difficult to interpret due to The data collected is corrected to the variables of wind, waves, sea current, account for the prevailing conditions of and draft/trim quality as well as seawater wind, waves, sea current, draft/trim and temperature and salinity. fuel oil quality. Resistance due to wave Vessel operators employ routine factors is also corrected in order to isolate methods of evaluating hull condition such performance penalties due to fouling of as the scrutiny of noon-position reports. the entire underwater surface area alone. However, these techniques do not provide Figure 1 shows a sample of the findings a tangible metric to enable fuel losses for ships taking part in the CASPER attributable to fouling (or corresponding programme, where hull condition is speed losses) to be seen directly. described in such a way that the cost- One company, Propulsion Dynamics, benefits of hull coating systems and based in Long Beach, California, has in-water service can be predicted with developed a turnkey hull performance greater accuracy. monitoring service known as CASPER A breakdown of the table shows that the (Computerized Analysis of Ship vessel type is stated in column 1, while PERformance). Rather than providing the column 2 shows the fuel consumption software or equipment for on-board use, achieved on the trial trip. Column 3, the company receives vessel performance ‘Hull/Propeller Condition at present’, data back from the ship and compares this indicates the added resistance of the vessel with information about speed and fuel due to fouling. This is a non-dimensional consumption which was gathered during number which describes the condition of
FIGURE 1 – Hull Resistance – A Fuel Efficiency Indicator Daniel Kane is Vice President of Propulsion Dynamics. Propulsion Dynamics provides analytical Type of Ship Tonnes of fuel per Hull / Propeller Tonnes of fuel per Tonnes of fuel per performance analysis to help shipowners optimise day consumed Condition at day consumed day to save now by vessel performance and reduce fuel consumption. on trial trip (fully present (added today due to fouling cleaning of hull and loaded) resistance) (fully loaded) propeller (fully loaded) Contact: VLCC ‘A’ 90 mt 23% 107 mt 11 mt per day Daniel Kane VLCC ‘B’ 90 mt 21% 105 mt 8 mt per day Propulsion Dynamics Containership ‘A’ 150 mt 30% 188 mt 12.5 mt per day Tel: +1 562 495 9027 Fax: +1 562 684 0808 Containership ‘B’ 110 mt 36% 147 mt 11 mt per day Email: dkane@propulsiondynamics. Key: mt = metric tonnes com Web: www.propulsiondynamics. [*Fuel savings from hull and propeller cleanings vary according to vessel type and condition com of the hull at most recent out-docking as well as time out of dock and loading conditions and are not necessarily proportional to the increase in resistance.]
38 www.bunkerspot.com December 2007 / January 2008 bunkerspot Technical Issues
the hull and propeller and is independent waves, sea current, draft/trim, etc, have of factors of speed, weather and draft. The been fully corrected, and the increases ‘Reports on hull conditions added resistance can be translated into in fuel use can be derived from the plots bring all the parties to the a specific increase in fuel consumption over time. The starting point for the or a specific decrease in service speed. line is indicative of the efficiency of the table’ This is important because a vessel may treatment in drydock, the slopes of the be exhibiting slower speed in terms of lines are indicative of the hull condition, ‘voyage days lost’ but there may be no and the steep drops in resistance for some change in fuel consumption; there is still, ships are indicative of instances of hull however, an inherent ‘loss’. and/or propeller maintenance. Column 4 shows the resulting increase Daniel Kane draws attention to the in fuel consumption of the vessel, assuming fact that reports on hull condition bring that all factors are the same as on the trial all the parties to the table, with the result trip i.e. the vessel sought to attain the that the drydock manager can better assess same speed with a fully laden condition, the quality of the treatment of the hull in and that all other weather conditions drydock, and the chartering department were also the same. Finally, Column 5 can see the actual obtainable speed and indicates the fuel savings that would be fuel consumption. Furthermore, the attainable (as a result of hull and propeller vessel performance team can track subtle cleaning), again assuming that load and changes in ship performance and the fuel speed conditions are the same. conservation coordinator can obtain a Fuel savings can also be attained from fleet overview of excess fuel consumption propeller polishing alone. For example, and work with the technical department for the vessels shown in Figure 1, propeller to minimise bunker consumption, where polishing alone could save up to 40% of the practical and under the guidance of the figures shown in column 5. Daniel Kane, coating suppliers and contractors. Vice President of Propulsion Dynamics, While the issues of marine fouling and acknowledges that many shipowners hull and propeller maintenance are not do not undertake propeller polishing or new, Kane believes that CASPER does hull cleaning because they can’t see any take monitoring to the next level: ‘What change in fuel use, but he notes that this is new is establishing optimal intervals for is a skewed viewpoint ‘because the scatter hull and propeller cleanings in order to in noon position reports can make it minimise bunker consumption, reduce difficult to see any significant changes in greenhouses gases and track changes in performance’. ship resistance in order to compare the Figure 2 shows a fleet overview for fouling factor (even slime) on a more seven ships, where the variables of wind, precise ship-to-ship basis.’
FIGURE 2
bunkerspot December 2007 / January 2008 www.bunkerspot.com 39 Environmental Issues "ACK TO THE FUTURE
David Waterman looks at hen Rudolf Diesel unveiled these ships to refuel regularly. Neither the potential of biodiesel his ‘flexible fuel engine’ in hydrogen power nor LNG are, on their W1900, it ran on biodiesel – own, renewable sources of energy – energy as an alternative fuel for peanut oil in fact. Diesel engines is required to separate hydrogen from continued to use biodiesel for at least water, while LNG is a fossil fuel of finite the shipping industry another 15 years until petroleum supply. The other problem with all these companies discovered how to refine technologies is the ‘chicken and egg’ issue. a cheaper product from oil that would No one will use the technologies until there suit the diesel engine. Today, advances is the infrastructure to support them, and in technology combined with the the infrastructure is unlikely to come about high price of oil have once again until there is sufficient demand. A switch made biodiesel an economically viable to an alternative fuel would have to be both option for the transport industry. practical and affordable. An indication of the potential biofuels Biodiesel overcomes all of these problems. have to replace petroleum products came Firstly, any engine that can use petroleum in June 2007 when the Organization diesel can also run on biodiesel with little or of Petroleum Exporting Countries no modifications. This goes a long way to (OPEC) warned that it was considering solving the ‘chicken and egg’ issue. cutting its investment in new oil production Secondly, biodiesel provides nearly the in response to moves by the developed same power output as petroleum diesel – world to produce more biofuel. Indeed, if having a slightly lower calorific value, but biofuel production did increase enough being naturally oxygenated – thus allowing to provide an alternative fuel to rival a fuller combustion. petroleum products, it would not only Finally, biodiesel is a renewable source of provide significant environmental benefits, energy. There is no real limit to how much but would inevitably reduce the world’s biodiesel could be produced. Although dependence on fossil fuels. So far, biofuel common forms of biodiesel feedstocks production has been focused on the such as rapeseed and soya beans take up automotive sector. But, despite a surprising large amounts of land that could be used lack of discussion on the subject within for food crops, there has recently been a the industry, biodiesel would offer many breakthrough in producing biodiesel from benefits as an alternative fuel for shipping – second-generation feedstocks that use a from both an operational and environmental fraction of the land required for first- perspective. generation crops.
Emissions challenge Algae breakthrough Shipping has come under increasing pressure Most notably, there have been break- to limit emissions of sulphur oxide (SOx), throughs in the development of algae-
nitrous oxide (NOx), carbon dioxide (CO2) based photo-bioreactors. The technology and particulate matter (PM). Aside from uses strains of algae that yield many times biodiesel, there are a number of alternative more oil than first generation feedstocks. fuels – solar power, hydrogen fuel cells The algae are contained in glass tubes, as
and liquefied natural gas (LNG) – that opposed to ponds, and CO2 is fed though would, in theory, reduce these emissions the tubes facilitating the growth of the
on the open seas. But so far they have algae. The majority of the CO2 that is not been developed to a point where fed into the photo-bioreactors is absorbed,
they could realistically be used to fuel which means that CO2 emissions from large-scale shipping. Although solar power heavy industry can be directly absorbed and would provide a perfect renewable source of used to produce biodiesel. energy, it has so far only been used to power The Japanese, French and German small vessels. Furthermore, the largest fuel governments have been investing in cell applications cannot currently exceed 2 this method of production. Chevron megawatts electrical (MWe) power output. Technology Ventures has recently LNG is used for a handful of large vessels, announced a joint venture with the US but there are storage issues that require National Renewable Energy Laboratory
40 www.bunkerspot.com December 2007 / January 2008 bunkerspot Environmental Issues
(NREL) to look into the potential of resulted in a 78.5% reduction in CO2 Barriers to entry algae-based biodiesel. Bunkerspot has also emissions. If all of the energy needed for There are, however, potential barriers to been in contact with scientists from the the production of biofuels was derived from overcome if biodiesel is to be used for UK who have claimed to have developed another renewable source of energy, the international shipping. The most pressing
a device that can capture CO2 emissions process would result in a 100% reduction in appears to be the faster degradation rate
directly from vehicles so that they can be CO2 emissions. of biodiesel. According to the NBB, the transported to algae photo-bioreactors. There are further benefits in using current industry recommendation is that Another second generation feedstock is biodiesel on ships. Biodiesel is non-toxic biodiesel should be used within six months, the jatropha plant, which can grow almost and degrades much faster than petroleum or re-analysed after that time, to ensure that anywhere, and is currently being promoted diesel. Consequently, a biodiesel fuel-spill the fuel meets the desired quality. While by countries such as India to produce would not cause serious ecological damage. this is a much longer period than any ship biodiesel on allocated wasteland. The Biodiesel has a higher flash point than would need to keep fuel in its tanks, the emergence of these new feedstocks means petroleum diesel (at least 93º Centigrade), six-month limit may cause problems for that that there is now far more potential so it is also safer to store. bunker suppliers. for biodiesel to compete with petroleum Biodiesel has a better lubricity than There are also issues with the higher products on availability and price. petroleum diesel. It can also be blended acidity of biodiesel, which may cause A switch to biodiesel would tackle with petroleum diesel in any proportions, corrosion in certain components of the emissions from any industry that uses producing different properties in the end engine. petroleum products, but would particularly product. According to the US National Another area to look at is the higher benefit shipping. This is because biodiesel pour point of biodiesel, which may become is virtually free of sulphates, and so goes a problem in colder climates. But this much further than the MARPOL Annex ‘Advances in technology appears to be a minor problem as engines VI regulations on SOx emissions demand. combined with the high that run on fuel oil heat the fuel before it Also, when compared to petroleum diesel, is combusted. average biodiesel emissions are reduced by price of oil have once The more obvious barriers are the 67% in total unburned hydrocarbons, 48% again made biodiesel an production levels and cost of biodiesel. At in carbon monoxide and 47% in particulate economically viable option present, for the purposes of international matter. The only emission that increases in shipping, biodiesel is slightly more these terms is NOx – by about 10%. This for the transport industry’ expensive than its petroleum counterparts is due to the more complete combustion – marine diesel oil (MDO) and marine of biodiesel – but this also contributes gasoil (MGO). As most international sales towards the reduction of other emissions Biodiesel Board (NBB), even biodiesel of fuel are tax-exempt, biodiesel would not such as PM. Many would argue that a slight blended at a 20% rate with petroleum benefit from the reduction of fuel duty that increase in NOx is worth the significant diesel has a lower wear-scar than traditional it currently has in some domestic markets. reduction in other greenhouse gasses. With fuel. There would also be benefits in using Although rising oil prices have narrowed the emergence of Sulphur Emission Control biodiesel as a cutter stock for bunker fuel, the gap between the price of biodiesel Areas (SECAs) and various ports attempting such as an overall reduction in sulphur and conventional diesel, the production to impose their own restrictions on sulphur content. costs of biodiesel would have to come emissions, SOx has so far been a bigger Furthermore, according to fuel blending down quite a long way before it would issue than NOx in the world of shipping. In specialist CBI Engineering, any ship become an attractive alternative for large- any case, it is likely that ship engines could engine that runs on fuel oil can use scale shipping. be modified to counter the NOx increase. unrefined biodiesel (or vegetable oil). In If it emerges that ships with fuel oil order for biodiesel to work in normal diesel engines can use unrefined biodiesel without Carbon neutral engines, it has to go through a process any major problems, the cost of switching In theory at least, the process of producing –‘transesterification’ – which removes the for these vessels would be much more biodiesel is ‘carbon neutral’: during glycerine content, reducing the viscosity of realistic, but even so, the price of raw production, the feedstock absorbs the same the oil. This process significantly increases vegetable oil is still above that of fuel oil.
amount of CO2 that the fuel will emit the production costs of biodiesel. However, There is also the question of how OPEC when combusted. Of course, energy is used fuel oil engines heat the fuel before it is would react if biodiesel were to get a strong to grow the feedstocks, and to extract and combusted. This decreases the viscosity, foothold in the world economy. Rather refine the biofuel, so currently the process so using the cheaper, unrefined biodiesel than the cartel curbing production – as it is not completely carbon neutral. Even so, would not be a problem. Consequently, has threatened – a more logical reaction a US Department of Energy (DOE) vessels that run on fuel oil (such as container would be a dramatic surge in production in study showed that the production and use ships) may be in a better position to use order to bring down the price of petroleum of biodiesel, compared to petroleum diesel, biodiesel than any other mode of transport. products and stifle any demand for biofuel.
bunkerspot December 2007 / January 2008 www.bunkerspot.com 41 Environmental Issues
Even if biodiesel production continues to be on the automotive sector in the Organization for Standardization to be more costly than oil production, short-term, the demand for biodiesel will (ISO) has no specification for biodiesel, western governments are likely to continue certainly increase. This should attract without which large-scale trading in the investment for reasons of energy security, more investment into biofuels production, marine sector is unlikely to take off. not to mention the environmental benefits. leading to better feedstocks, more advanced Establishing a specification could take The US wants to cut its petroleum use production techniques and greater years. Furthermore, although ships’ engines by 20% by 2015, and currently subsidises economies of scale. If this happens, it is could be modified to tackle the slight the production of biodiesel. California far more likely that biodiesel will receive increase in NOx emissions that biodiesel and Minnesota are proposing plans that attention from the shipping industry as an produces, these new settings would have would require vehicles to fill up with alternative fuel. to be approved by the International 20% biodiesel blends by 2015. In Europe, Council on Combustion Engines petroleum diesel can already be (and is) Biodiesel suppliers (CIMAC). The International Maritime blended with up to 5% biodiesel without There are already a handful of suppliers Organization ( IMO) is currently deciding compromising vehicle warranties, and selling biodiesel to the marine sector, on the best course of action to take in order there is a reduction in duty for biodiesel but these tend to be for the purposes of to limit SOx and other emissions, but the in European Union (EU) countries such private vessels or cruise ships that use organisation says that it has not received as the UK. The EU’s commitment to distillates rather than fuel oil. In 2007, ‘any formal submission’ on the issue of
achieve a reduction in CO2 emissions by Royal Caribbean International was using biodiesel as an alternative fuel. 8% between 2008 and 2012 has resulted supplying cruise ships with palm-based in the setting of a target of 5.75% biofuels biodiesel in the Port of Vancouver, Canada. Sustainable alternative of all transportation fuel by December Transmontaigne supplies biodiesel to Biodiesel could present a sustainable 2010. This will make the EU the largest ships on the US Gulf Coast and in New alternative to the petroleum products used market for biofuels in the world. In the York Harbour via barge and ex-pipe. In in shipping, and tackle environmental Asia-Pacific region, countries such as New November 2007, the company’s price for issues at the same time. But much more Zealand, the Philippines, Thailand and marine biodiesel was between $900 and discussion is needed on the subject, South Korea have all introduced blending $950 a tonne. In comparison, the prices of especially concerning the technicalities mandates. According to consultants Frost MDO in the key US ports ranged between of using the product at sea. With so & Sullivan, consumption in this region is $750 and $900. many governments determined to see the likely to reach 1.2 million metric tonnes Whether the use of biodiesel will be emergence of biofuel as an alternative (mt) this year, with China, Australia, incorporated into large-scale shipping energy source, it is surely a question of Indonesia and the Philippines representing will depend on the industry regulators as when – not if – biodiesel will present itself the largest markets. well as engine manufacturers and shipping as an economically viable alternative fuel While the emphasis is likely to continue companies. Currently, the International for the marine sector.
/VERCOMING THE BIODIESEL STABILITY CHALLENGE
Ralph Lewis, Vice President Research Inc. has successfully formulated Protection Agency’s (EPA) heavy-duty Technical at Power Research Inc., an effective fuel stability treatment diesel emissions testing protocol indicate considers how the concerns over (PRI-D) for B-20 biodiesel blends (80% that such reduction is not yet sufficient biodiesel stability can be overcome. diesel, 20% biodiesel). Independent to be equivalent to NOx emissions from A major challenge with soy and laboratory tests conducted by Intertek conventional diesel. rapeseed extracted biodiesel continues to Caleb Brett and Saybolt confirm PRI-D Can these technical issues be resolved? be storage stability. Experience indicates capability to extend B-20 integrity in Perhaps. But then the question of that some biodiesel fuels can significantly storage. economic viability remains. deteriorate in as little as 30 days. To Under the two test methods – ASTM While biodiesel in the US has enjoyed make matters worse, most of these fuels D2274 and Octel F21-31 – B-20 fuels certain niche markets, including do not respond well to conventional fuel treated with PRI-D have respectively municipal fleets, harbour cruise operators, stability treatment. In fact, many diesel shown stability improvements ranging not to mention the tour buses of certain fuel stability treatments can actually from 33% to 50%. politicians and entertainers, it remains make the rate of biodiesel degradation In fresh B-20 biodiesel, application of more costly than conventional fuels in an dramatically increase. PRI-D also appears to have a positive environment where the public is already Degraded biodiesel can also have a effect on emissions reductions. Field trials reeling from steep fuel cost increases. profoundly negative effect on emissions. with PRI-D treated B-20 on a municipal As to the promise of biodiesel as a Simply, when biodiesel degrades, certain fleet suggest that PRI-D does help replacement for conventional bunker fuel acids form, notably carboxylic acid. The reduce nitrous oxide (NOx) from B-20 in the world’s great maritime fleets, that presence of this acid in any fuel – whether fuels while also achieving even further is a bet best left to Las Vegas odds makers. diesel or heavy fuel oil – results in reductions in particulate emissions. Yet Their revenue stream always counts on increased smoking. strict laboratory engine tests conducted a handful of players willing to ‘pony up’ But there is hope. To date, Power under the US Environmental against high odds.
42 www.bunkerspot.com December 2007 / January 2008 bunkerspot Environmental Issues 3MOKE AND -IRRORS
Jon Watson of Razaghi he environment is one of the engineers, for some reason). It is something Meyer International main driving forces behind to do with the primitive brain stem and Tmuch of the new legislation in the fight or flight mechanism. Propaganda considers how the every country. It is now the turn of targets the emotions and, through public the marine industry to address the perception, can influence domestic politics. propaganda machine may problems of pollution. The problem is that despite its global be undermining the aims As a global industry and a global problem significance, in no one country is shipping the appropriate mechanism is that provided sufficiently well valued for its interests to of MARPOL through the International Maritime carry much weight. Unilateral legislation Organization (IMO). Part of the solution is influenced by domestic politics and they is the MARPOL Annex VI treaty under can be influenced by the propagandists. which the industry can hope for a settled, Propaganda is not something that has effective, and workable globally uniform set directly influenced the IMO processes but it of regulations as a framework for ongoing could be a very powerful agent in unilateral improvement and change. Simply adopting legislation. a 1.5% limit in Sulphur Emission Control The tools available to the propagandist are Areas (SECAs) against a 2.6% average fuel numerous, but here we will look only at a sulphur value represents a realistic and few. The point is to raise awareness of the achievable sulphur oxide (SOx) reduction nature and extent of the problem. of around 42%. Market-based mechanisms It should be remembered in this that could hope to encourage further real MARPOL is about two separate air pollution reductions. issues: greenhouse gases and their relevance The evolution of MARPOL has been to global warming, and particulates and a consultative process that is inclusive their relevance to health issues. It is common of the marine industry’s input and the for the ‘green’ organisations to confuse result is based on a consensus view of the separate issues of greenhouse gases and the best way forward. Consensus does not particulates. mean ‘compromise’ but that is the way First, let’s take a look at how emotive some detractors have begun to describe it. words and descriptions are used to highlight Indeed, in the many studies of Multilateral the problems of shipping emissions. Environmental Agreements (MEAs), this Bunker fuel is variously described as consensus is seen as a vital ingredient for having ‘500 times more sulphur than land- their success. However, the alternative to based fuel’, while Friends of the Earth says the treaty is unilateral legislation in which bunker fuels are ‘1,000 times dirtier’ than the involvement of the industry is less likely road transport fuels, ‘an asphalt-like gunk’. to be sought or welcomed and consensus is Elsewhere: ‘Bunker fuel has sulphur content irrelevant. The impact on the industry is also of up to 27,000 parts per million (ppm), of little real political consequence. compared to 15 ppm in diesel burned by cars The IMO Secretary General’s calls for the and trucks in the United States’. One writer industry to help influence the various treaty then says that ultra-low sulphur diesel ‘results states to implement the necessary statutes, in lower emissions of nitrous oxides (NOx), his warnings about unilateral legislation and an ingredient of smog, and particulates, his increasing urgency about implementation which are known to cause cancer’. He may indicate a deeper concern. admits that there is a price to pay: ‘Maybe 50 Is MARPOL Annex VI a pivotal event? cents on your next $1,000 TV set, or a nickel If MARPOL is superseded by unilateral on your next pair of jeans’. legislation, what else may drop out of the We can all think of better and fairer ways IMO’s remit and how long before the IMO to describe fuels, and we can all recognise Contact: is irrelevant? where the ‘truth’ turns into fiction, but you Jon Watson The focus of this article is on how would have a hard time to find the truth out Razaghi Meyer International propaganda can be used to skew the public’s there in the world the public sees. Tel: +44 1903 884 472 perception of the scale of the problem of All of these comments seem to imply Fax: +44 7092 809 181 emissions caused by shipping. that clean fuels mean less greenhouse gases. Email: [email protected] It is claimed that many decisions are made Naturally, the results of the American Web: www.viscoanalyser.com based on emotion rather than logic (except for Petroleum Institute (API) sponsored
44 www.bunkerspot.com December 2007 / January 2008 bunkerspot Environmental Issues
study, which says that switching to distillates Japan, India and Germany. The 7th is the from North America, 74% of emissions will increase CO2 emissions anywhere from UK so shipping must be presumed to emit from the Organization for Economic 1% to 17% compared with residual fuel, between 558,225 and 837,425 metric tonnes Cooperation and Development (OECD) are ignored. Others claim that there are (mt). Europe and 190% of those from Germany. sufficient distillates available. The industry But the US emits, in total, 5,762,050 mt They are equal to 100% of nitrogen emissions says not. so shipping actually emits one twelfth the from US mobile sources and 87% of nitrogen
One way to use the ‘truth’ to tell a lie is to amount of CO2 by the US, but actually only emissions from US stationary sources.’ find the most damaging way to present the about 3.05% of the world total. They add that: ‘Ship sulphur emissions data; you don’t need to falsify any data to do By treating shipping as a country equal 43% of total sulphur emissions from this. One approach is to use ‘rankings’. equivalent and reporting a ranking is more the United States, 35% of sulphur emissions Environmental advocacy group Oceana damaging than reporting proportions. Of from North America, 53% of emissions from
says that shipping pumps as much CO2 course, maybe the shipping emissions ought OECD Europe and 178% of those from into the air as all the cars used in the to be shared out among the different counties Germany’. United States put together. In fact, ‘only on a pro rata-basis. Now even if the actual data is correct, it
six countries crank out more CO2 than the The Science Daily website (www. is most damaging when presented in this global shipping fleet’. sciencedaily.com) presents Carnegie Mellon way and tends to creep through into other This may be true, but how many readers University researchers Corbett and Fischbeck reports. Notice a possible link between this bother to look objectively at the data, the as the source for this example of ranking: account and domestic politics. presentation or the conclusions? ‘World-wide ship nitrogen emissions are In Lessons from the Cosco Busan Oil According to NationMaster, the top six equal to nearly half of the total emissions from Spill, Mark Leno, Member, California
CO2 emitters are the US, China, Russia, the United States, 42% of nitrogen emissions State Assembly, is reported to have said: Environmental Issues
‘Other distillate fuels are cleaner and readily This report is well organised, systematic exploited the INTERTANKO proposal available and environmental groups have and appears to have considerable clarity. and became a call for a ban on bunker been pushing for a ban on bunker fuel for The language is neutral and it quotes relative fuels. Some characterise the debate as being nearly ten years.’ risk (RR) values throughout, as one would between distillate fuels or scrubbing. Clearly Well, what do we expect from pressure expect of an epidemiological study. many do not like the idea of SECAs. groups and politicians; at least scientists are The declared intention of the ‘60,000 deaths’ Evidently the industry needs to do impartial and present the facts. Or do they? report is to help assess the options of uniform everything it can to make MARPOL work. Next is a lesson in getting your message global standards versus requirements for One of the vulnerabilities of MARPOL, or across: to present it as science – but here designated control areas and the benefits and any other legislations, is a lack of reliable and we have some problems as lay people. The costs of various emission-reduction strategies verifiable ‘observational’ data which would above examples were easy for anyone to (e.g. fuel switching versus after treatment be of the utmost value to the industry both pick apart with a bit of time and access to technologies or operational changes). in helping make MARPOL a success but the internet. The scientific article presents a About all one can seize upon is that it says also in helping develop clear information on bigger challenge. sulphur from shipping makes up 5%-8% the amount of fuel used, when where and Very few scientific papers get much of global atmospheric sulphur. In the UK, with what resultant pollution. Continuous coverage in the press but ‘Mortality from shipping contributes 2% to the atmospheric Emissions Monitoring Systems (CEMS), Ship Emissions: A Global Assessment’ by sulphur and 3% to NOx. It is a high a feature of most successful MEAs, or James Corbett and James Winebrake from population density industrialised country Continuous Emissions Reporting Systems Rochester Institute of Technology (the same close to other industrialised countries and (CERS) would seem essential and especially Professor Corbett we encountered above) with some pretty intense shipping through if Market Based Mechanisms (including has achieved extraordinary world-wide the English Channel and in the North Sea. Emissions Trading) are to become a reality. coverage, including in the marine industry’s This ought to be a ‘hot-spot’ but the ‘60,000 But it also doesn’t need last minute own press and in the daily press, but has deaths’ report’s 5%-8% SOx suggests the dissention caused by unnecessary proposals anyone analysed it? Is anyone equipped to converse. So how do we account for these that are contended within the industry being do so? differences? used as ammunition against it. The SECA It spawns quotes such as ‘Ships belching These are all necessarily epidemiological approach will deliver significant reductions, toxic fumes from diesel fuel contribute to studies. Epidemiological studies are it is workable. The distillates proposal is the deaths of thousands of people in Europe, sometimes very suspect. In some cases they available already to all who want to use it
Asia and the United States each year’. are the modern equivalent of examining but as a single solution. It adds to the CO2 One article has Corbett quoted as saying chicken entrails. Particulates do affect health, burden and there is not enough distillate ‘The report arrives just as the IMO is but the problem is to isolate the effects available whereas the lessening demand for beginning to debate the issue...’ of marine pollution and correctly weigh land-based heavy fuels means that supplies How has this ‘assessment’ received so and attribute their role in mortality, and for the marine industry will continue to be much coverage? Perhaps it is because in their mortality isn’t just caused by particulates available and for the expected expansion of ‘assessment’ the authors use the headline and often we are talking about mortality as shipping. term ‘60,000 deaths’. a result of long or short term exposure and But how do these messages get across? Is Actually, for the layman, this is about the its effect on life expectancy. There are a lot it possible that the industry needs a single only comprehensible statement. The best of complications to the data, the models and unified representative body that can contain the layman can do is look at the style and the treatment that would take some skill to the industry’s internal debates and which can language used in the report itself. What does unravel. represent only those options to the outside that tell us? We need a benchmark which Now it may be that the ‘60,000 deaths’ world that are collectively agreed by the we can get by looking at similar reports on authors are exactly right or even that they are industry? Does it need a single body that PM2.5 particulates and mortality rates. Take conservative. What they are not, apparently, can tackle the wider issues and which can the Department of Environment, Food is impartial. target propaganda? Does it need to follow and Rural Affairs (DEFRA) sponsored In the end, the only way to fully evaluate the lead of the tobacco industry or the ACE fact sheets for an understandable the report is for it to be reviewed by other pharmaceutical industry in facing up to the discussion of pollution (www.ace.mmu. scientists. The industry may need its own world of domestic politics? ac.uk) and compare to the Clean Air Task scientists tasked to investigate any such Whatever needs doing needs doing Force (CATF) review of the 60,000 deaths papers. now; time is running out; in November’s report (www.catf.us). The environmental propagandist groups Transport & Environment Bulletin, Mogens Or consider the UK’s report: Long- are targeting the marine industry. Every Peter Carl (Director General of the EC’s Term Exposure to Air Pollution: Effect ‘incident’ is seized on as an excuse for calls DG Environment Directorate) is reported on Mortality. A report by the Committee for ‘something to be done’. That ‘something’ as saying that the EU is within months of on the Medical Effects of Air Pollutants changes week by week and what started as proposing unilateral legislation, and that its (COMEAP). a call for taxation on bunker fuels quickly patience with the IMO process at an end.
46 www.bunkerspot.com December 2007 / January 2008 bunkerspot Security Issues 3TATE OF INTERDEPENDENCE
Stan Ayscue of nergy independence remains an worried about the global issues regarding Securewest International illusion for the majority of nations, energy transportation, recently commissioning Ebut as the growing economic a report by their own Energy Security looks at global security powers around the world experience Group that highlighted sea lanes in general, exponential levels of dependency on and the Strait of Malacca in particular, as issues in maritime energy imported energy supplies (particularly areas most vulnerable to a terrorist attack transportation by sea), is the threat to these supply lines (see the article written by Securewest and ultimately their economies just as International’s new business development much of an illusion, or should we be manager, Paul Singer, in the April/May 2007 seriously worried? issue of Cargo Security International). There is no doubt that maintaining and The US, Japan, China and India aside, there securing high levels of stability for world are many other shining examples of such energy supply through global state cooperation, interdependence on the business of energy particularly with the emergence of growing shipping. There are clear vulnerabilities, but energy consuming giants like China and are the threats out there real, and if so, where India, should be a major strategy for the do they come from? world’s governments. Both Osama bin Laden and Ayman Take China as a prime example. A country al-Zawahiri have repeatedly called for attacks which has begun an ambitious effort to build a on key Western economic targets, especially fleet of more than 90 supertankers to improve energy sources. its control over oil imports vital to sustaining In today’s world the line between piracy a booming economy, and also a country and terrorism is less well defined and piracy singled out by maritime security analysts as certainly continues to be a major concern to experiencing growing fears over potential the sector. The International Association threats to its oil deliveries due to international of Independent Tanker Owners tension or conflict. (INTERTANKO) reports being ‘deeply By definition, the policy of maintaining concerned over the trend of piracy in the past some form of global security requires both several years’ as it constitutes an ‘extremely the creation of deterrence initiatives aimed grave threat to the lives of the crews and the Stan Ayscue is business development manager at at those who look to disrupt this trade, and safe operation of ships.’ global maritime security service provider, Securewest a massive push towards maritime security According to the International Maritime International. activity that helps to crush those seeking to Bureau’s (IMB) latest figures, 35% of piracy Having previously served in the US Army and then working for US Federal Prison Industries, Stan create instability along various parts of the attacks have been against product/chemical Ayscue joined Securewest International in 2004. world’s energy supply chain. tankers and crude tankers with an overall 38% Based in the US, Stan is currently employed by But it is also the case that those looking to of piracy attacks against the energy sector in Securewest International as business development secure this supply chain should be realistically general. manager and is responsible for identifying and assessing the threat before employing At the coalface, crews are certainly creating solutions for the company’s clients world- legislation and offensive tactics. After all, concerned, as highlighted in a recent survey wide. there is no point in concentrating time and conducted by ship officers’ union Nautilus Securewest International has been specialising in money trying to prevent security incidents UK, where 27% of members stated that they maritime security for 20 years, providing on-board that may rationally never happen. Terror were ‘very concerned about the threat of or in-port security officers (armed or unarmed), tactics do tend to lead to varying levels of piracy and terrorism’. Furthermore, 22% of International Ship and Port Facility Security hysteria, but there is a justifiable basis for (ISPS) and related regulated compliance and audit respondents had been on a ship involved in a programmes, as well as training for vessel, facility some of the more extreme theories if you look piracy incident or attempt. or company security officers, and ship security hard enough for them. Mix threat with the right pinch points and alert system (SSAS) monitoring through a 24/7/365 Think for a moment about the way our a volatile mix is created. The fertile grounds Maritime Assistance Centre. energy world is shaped and how delicate it is. are well known by now, with the most talked- The US is the largest oil importer in the about being the Malacca Strait. IMB figures Contact: world, bringing in 13.5 million barrels a day on tracked vessels give us ample background Stan Ayscue (b/d). Oil from the Middle East accounts for as to why this is the case. According to the Securewest International 20% of those imports, and this dependence is IMB, nearly 65,000 ships transited the Strait Tel: +1 757 461 4343 growing. in 2005, of which 35% were tankers. One Fax: +1 757 461 8666 Japan, which has very limited energy quarter of the world’s annual fleet tonnage Web: www.securewest.com resources in comparison but has a growing passes through here – much of it oil. 80% of demand for energy supplies, is also clearly the energy supplies of Japan and China alone
bunkerspot December 2007 / January 2008 www.bunkerspot.com 47 Security Issues
pass through the Strait and so it represents a ones to watch. Coupled with a tendency to and ignite the remaining liquid pool on site. serious choke point. only closely monitor the largest tankers as the A direct terrorist attack could cause the LNG West Africa is becoming more and more biggest perceived risk, and there is a danger vapour to ignite immediately. infamous too. Currently, 40% of Nigeria’s oil that the door is being left wide open. Small It is not just their explosive qualities that is exported to the US, accounting for 15% of craft could pose the greatest risk to product make vessels transporting energy supplies all US oil imports, a figure set to rise to 20% by tankers, coastal tankers, fuel barges and more. appealing to extremist groups. The al 2010. Nigerian terror group The Movement The world’s economy today relies almost Qaeda attack on the tanker MV Limburg for Emancipation of the Niger-Delta entirely on a ‘just in time’ delivery principle. off the Yemeni coast was a clear attempt to (MEND) represents a formidable force and Threaten to detonate fuel barges in a few manipulate rising maritime insurance rates in controls much of the Delta area. major ports, effectively closing them off, and order to adversely affect a country’s economy. Its not just about terrorists either, inter-State it will only be a matter of time before the The resulting increase in insurance rates in stability provides its fare share of problems economy suffers, stock markets go into tail- the wake of that attack proved to be a real with the majority of oil originating from the spin and consumers start panicking. turn-off for some companies. Remember too Mideast region. The main area of contention regarding that global economic manipulation of this One fifth of oil consumed by the world liquefied petroleum gas (LPG) and liquefied sort ultimately filters down to the pockets of passes through the 34-mile wide Straits of natural gas (LNG) security is the exact risk the end user. Hormuz, equating to 17 million b/d of oil, it holds. LNG is a significant growth sector So there are very real threats out there, and Iran has previously threatened to close off with order books for LNG carriers full to and definite ways and means that these the Straits in retaliation to any strike against overflowing. The UK, after the North Sea unscrupulous elements could easily manipulate its nuclear programme. With over 1,000 Fast heydays, became a net importer of LNG in situations and locations to suit their own ends. patrol boats based in and around the Straits 2005 and may rely on imports for 80% of What, then, are the answers? and producing a quarter of the world’s oil, capacity by 2015. Keeping that supply chain The Nautilus survey on security mentioned Iran is well placed to disrupt supplies and exert open is going to be vital for any economy earlier found almost two-thirds of respondents considerable upward pressure on the price of reliant on gas. thought that increased manning would be the crude if it chooses to. Big or small, can you easily blow up such move most likely to improve security and There is also a tendency to only consider tankers? There is some debate when it comes reduce the risk of attack, and that a substantial large vessels as terrorist targets, just because to LNG and the energy shipping industry number complained of failure to invest in they are big. Smaller product tankers provide itself does have a very clean record, despite extra manning or equipment. just as good if not better potential targets. contrary perceptions in some quarters. But what good are more bodies onboard if With a smaller crew, they are easier to take To date, it has been a very safe industry they don’t know what they are doing, don’t over – and with a lower freeboard they are with an almost clean bill of health in the past know how to initiate best practice or use vital easier to access from small craft. In terms of 40 years. This is no accident and it is largely equipment, or simply remain complacent? threat they present an equally strategic target, due to high safety standards, strict regulation At Securewest International we suggest especially if multiple locations were selected and high levels of industry co-operation as that companies concentrate on getting the either world-wide or by country. Any focus regards safety issues. smaller scale issues right to begin with and on key structures, ports and choke points The industry maintains that LNG is not get themselves on the right side of compliance linked with intent to detonate would have a explosive or highly flammable until it regains first. devastating effect on an economy in a very its gaseous state. It is of course the duty of the The US Maritime Transport Security Act short time. industry to toe this line; but while elements (MTSA) and the International Ship and Port There may already be a strong case for a of the argument are true the fact remains that, Facility Security (ISPS) Code set out the shift in threat assessment when it comes to as with oil, LNG can catch fire at sea if a tank minimum standards to achieve – but the Trojan horse scenarios of huge super tankers is ruptured. It hasn’t happened so far, but aim should be to exceed the minimum. being hijacked and taken into ports as floating that doesn’t rule out a situation that could be Conducting regular training, drills and bombs. manufactured to deliberately cause a tanker to rehearsals and employing technology (night Threat may no longer come directly from catch fire and maybe explode. Either situation vision equipment, acoustic devices and other onboard vessels or in containers but from is a disaster. aids) is vital. small craft or smaller hijacked vessels. Vayl It is thought that an LNG tank rupture So too are regular reviews and risk analysis Oxford, head of the US Department of would cause the material to flow out at speed of routes commonly used to transport energy Homeland Security’s (DHS) Domestic and part of the liquid will then form a gas products, which will ensure any preventative Nuclear Detection Office, said recently cloud. How big the cloud would be, and action or re-routing can be taken ahead that there has been a shift away from port- the direction in which it would drift, would of time. Sharing any intelligence with the centric attention. History dictates (USS Cole, depend on conditions at the time of the maritime community or bodies like the IMB MV Limburg) that attacks can come from incident. If the cloud finds a source of ignition, ensures that a bigger picture can be built the smallest of craft, and therefore there is a it will cause a flash fire burst. This could track and others notified of a shift in tactics or strong case that vessels sub 300 tonnes are the itself back to the source – ruptured tanker – impending threat.
48 www.bunkerspot.com December 2007 / January 2008 bunkerspot Events
The course is organised by Petrospot Ltd security stream is also included, focused and is led by Chris Fisher, Managing Director on the cruise industry and on the petroleum %VENTS $IARY of Bunker Claims International. supply infrastructure, storage, barging and Contact: Luke Hallam Evans shipping. JANUARY Tel: +44 1295 814455 Contact: Luke Hallam Evans SINGAPORE: Bunker Quality Course Fax: +44 1295 814466 Tel: +44 1295 814455 14-15 January, Orchard Parade Hotel, Email: [email protected] Fax: +44 1295 814466 Singapore Web: www.petrospot.com/events/piraeus Email: [email protected] This two-day advanced course on bunker Web: www.petrospot.com/events/maritime quality, jointly organised by Magenta APRIL Global and Petrospot, aims to help to NETHERLANDS: Bunker Experience SEPTEMBER reduce operational risks in the bunker 14-17 April, Vlaardingen, Rotterdam UNITED KINGDOM: The Oxford Bunker business. Highlights include: latest industry Organised by Vergo Consultancy at the Delta Course developments; risks associated with low- Hotel, Vlaardingen, this hands-on training 8-12 September, Oxford quality bunkers and how to avoid them; new course is limited to 18 delegates. A five-day intensive residential course quality issues with low sulphur fuels; and the Contact: Goris Vermeulen covering technical, operational, commercial, legal issues of bunkering. Tel: +32 484 168780 financial and legal aspects of bunkering. Contact: Helen Lee, Magenta Global Pte Ltd Fax: +31 847 474573 Detailed case studies, demonstrations, Tel: +65 6391 2549 Email: [email protected] lectures, practical exercises and discussion Fax: +65 6392 3592 Web: www.bunkerexperience.com groups, plus comprehensive course literature, Email: [email protected] provide a thorough grounding in the industry. Web: www.magenta-global.com.sg/bunker/ MAY This course is celebrated for its exceptional UNITED KINGDOM: The Oxford Bunker networking experiences, including tours of FEBRUARY Course Oxford University, course dinners, and it UNITED KINGDOM: Managing and Avoiding 12-16 May, Oxford attracts students from all over the world. Bunker Claims This highly-popular five-day intensive Contact: Luke Hallam Evans 7-8 February, London residential course covers technical, Tel: +44 1295 814455 Organised by Lloyd’s List Events at the operational, commercial, financial and legal Fax: +44 1295 814466 Lloyd’s Maritime Academy, London. aspects of bunkering. Detailed case studies, Email: [email protected] Contact: Maritime Customer Services demonstrations, lectures, practical exercises Web: www.petrospot.com/events/oxford Tel: +44 20 7017 5511 and discussion groups, plus comprehensive Fax: +44 20 7017 4745 course literature, provide a thorough OCTOBER Email: [email protected] grounding in the industry. This course is also SINGAPORE: SIBCON 2008 Web: lloydsmaritimeacademy.com/lm1980 celebrated for its exceptional networking 15-17 October. Venue, programme, organiser experiences. and contact details to be finalised. UNITED KINGDOM: The IBIA Dinner 2008 Contact: Luke Hallam Evans 18 February, London Tel: +44 1295 814455 The 14th annual International Bunker Industry Fax: +44 1295 814466 NOVEMBER SOUTH AFRICA: The IBIA Annual Convention Dinner takes place at the Hilton Hotel on Park Email: [email protected] Lane. Web: www.petrospot.com/events/oxford 2008 Contact: Anne Chambers 24-27 November, Cape Town Tel: +44 2380 226 555 UNITED STATES: Maritime Week Americas Now in its fifth year, the IBIA Annual Fax: +44 2380 221 777 2008 Convention takes place at the Westin Grand Email: [email protected] 19-23 May, South Beach, Miami, Florida Cape Town Arabella Quays Hotel. Comprising Web: www.ibia.net The inaugural Maritime Week Americas one- and two-day training courses, an will feature a range of seminars, courses, exhibition, and an issue-led conference MARCH and conferences, split into specialised designed to spark discussion and debate, GREECE: The Piraeus Bunker Course streams covering bunkering operations, this is the only forum where your Association 5-6 March, Piraeus environmental, legal, commercial issues and invites you to have your say. Organised Taking place at the Piraeus Marine Club, maritime and port security. A substantial by Petrospot on behalf of IBIA, this event this information-packed training course exhibition, port visits, and a spectacular will follow on from the success of IBIA’s focuses on fuel standards, sampling and networking programme offer unique earlier Conventions in Buenos Aires, Hong treatment onboard, quality and quantity, opportunities to meet the experts and to Kong, Monaco and Montreal, and will include credit analysis, commercial, legal and do business. Key seminars include the spectacular networking opportunities. operational issues. The course provides Bunker Arbitration Experience (legal stream), Contact: Luke Hallam Evans a practical and ‘hands-on’ approach that Emissions from Ships: Dealing with a New Tel: +44 1295 814455 encourages delegate participation and the Environment (environmental stream), and Fax: +44 1295 814466 sharing of individual experiences. Delegates the Bunker Credit Risk Analysis Course Email: [email protected] will also witness a live bunkering operation. (commercial stream). A port and maritime Web: www.petrospot.com/events/
To list details of bunker related events contact: Tel: +44 1295 814455 Fax: +44 1295 814466 Email: [email protected]
bunkerspot December 2007 / January 2008 www.bunkerspot.com 49 Networking
930; Direct Tel: +49 40 350 93 156; Email: 10 Bongrae-dong 1(il)-ga, Jung-gu, 100-161 /N THE MOVEx [email protected]. Seoul, South Korea. Tel: +82 70 7432 0000; Fax: +82 2777 0340; Mob: +82 1923 30780; Europe Serbia-based bunker trader Dragan Email: [email protected]. Richard Warwick, formerly of Texaco, Tramp Petrovich has a new telephone number and Oil and World Fuel Services, and Tim Troy, email address: Tel: +381 11 3774 636; Fax: OceanConnect has opened an office in formerly of Galbraith’s, Tramp Oil and World +381 11 3774 728; Email: petrovichdragan@ Japan at Vanquish, 10th Floor, 1-12-4 Ginza Fuel Services, have formed a new bunker nadlanu.com. Chuo-Ku, Tokyo 104-0061, Japan, managed trading company, Artico Energy Limited in by Ryo Furuya. Tel: +81 3 5524 2971; Fax: +81 London. Artico is majority owned by Equus Mideast and Africa 3 5524 2970; Email: rfuruya@oceanconnect. Investments Limited and operates from 1st Stefano Modola has resigned from his com. Floor, 3 More London Riverside, London position as General Manager of Kangaroo SE21 2RE, England. Tel +44 20 3283 4140; Oil Traders (Pty) Ltd in Mombassa, Kenya. Americas Fax +44 20 3283 4001. Mark VandeVoorde, formerly of Chevron, Asia Pacific has joined the Houston office of Bominflot Martin Lucas has been appointed Managing The Cockett Marine Oil group has formed Bunker Oil Corp. From 1 January 2008, Director of equipment specialists Kittiwake a new subsidiary in South Korea. General he will be the new President and CEO Developments Limited in Littlehampton, Manager, Jungsuk Shin, has previously of Bominflot’s US operating companies, England. Tel: +44 1903 731470; Fax: +44 worked for KMBC, Tramp Oil and World Fuel replacing Robert Lake who will assume a 1903 731480; Email: [email protected]. Services. Gene C W Ma (Ma, Chang Won) new position in organisational development has been appointed Assistant Manager – and global strategy for the Bominflot Group. Bominflot has appointed Mathias Berndt Trading. Contact: Cockett Marine Oil (Asia) Tel: +1 713 952 5151; Fax: +1 713 977 1275: as Managing Director of OMB Ostsee Co. Ltd – Korea, Coal Center, 2nd Floor, Email: [email protected]. Mineralöl Bunker GmbH, based in Rostock, 80-6 Susong-Dong, Jongno-Ku, Seoul Germany. He succeeds Axel Scheil, who 110-727, South Korea. Tel: +82 2 730 1894; Stephen T. Leonard has joined Aegean has passed away. Tel: +49 381 25 22 30; Mob: (J S Shin) +8210 3132 6264; Mob: Marine Petroleum Network Inc. as Vice Fax: +49 381 25 22 316; Mob: +49 172 (Ma, Chang Won) +82 11 9108 1266; Email: President, Americas. Contact: 18001 Old 38 00 368; Email: [email protected]. [email protected]. Cutler Road, Suite 319, Miami, Florida 33157, United States. Tel: +1 305 233 6500; Fax: +1 Jens Treckmann has joined the Supply O.W. Bunker Group has established a fully- 305 233 2247; Email: [email protected]. and Risk Management Team at Bominflot owned subsidiary in South Korea, employing Bunkergesellschaft für Mineralöle mbH & Co Joon Kim as Senior Trader. Contact: O.W. Olga Traferro has left Agencia Maritima KG in Hamburg, Germany. Tel: +49 40 350 Bunker Korea, Room 1305, Woori Building, Challaco S.R.L. in Buenos Aires, Argentina.
To list details of bunker related moves contact: Tel: +44 1295 814455, Fax: +44 1295 814466, Email: [email protected]
"OOK REVIEWx
The November 2007 edition of the and Asia, including less well-known [email protected]. BunkerNews Directory has just markets such as Cuba, Romania, Libya Meanwhile, the less sophisticated but been released by Lloyd’s MIU. The and Indonesia. These summaries are still useful IBIA Membership List 2008 ‘Little Black Book’ was launched in provided by Bunkerspot. has also just been published. Available to May 1993 (by its founder Llewellyn Another innovation is a seven-month IBIA members, it comprises 155 pages. Bankes-Hughes, now Publisher of calendar and diary of bunkering events, Contact: [email protected]. Bunkerspot). In its 15-year history it which includes the IBIA Annual Dinner has undergone many subtle changes, (18 February), Piraeus but remains true to the original Bunker Course (5-6 in size and concept and is still by March), Oxford Bunker far the most reliable and accurate Course (12-16 May) and listing of bunker suppliers, traders Maritime Week Americas and brokers available, either in print in Miami (19-23 May). form or electronically. The BunkerNews The new edition lists over 1,200 Directory (November 2007 distinct companies (12% more than the edition), with over 600 May 2007 edition), 1,450 offices in over pages, including market 75 countries (150 higher) and 3,000 summaries, company listings, personnel (200 more than last time). comprehensive indices and a For this celebrated 30th edition, LMIU diary of events, is priced at has added a 34-page summary of most of US$162 / £85 per copy. To the world leading bunkering centres in order a copy, go to www. the Americas, Europe, Mideast, Africa lloydsmiu.com or email